The estimated demand for a good X is 
= 70 - 3.5P - 0.6M + 4PZ, where 
= units of the good, P = price of the good, M = income, and PZ = price of related good Z. All parameter estimates are statistically significant. Which of the following statements is correct?
A. X is a normal good.
B. X is an inferior good.
C. X and Z are substitutes.
D. X and Z are complements.
E. both b and c
Answer: E
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The supply curve will be more elastic if
a. the good has few substitutes b. the time the producer has to adjust is long c. the time frame for adjusting to price changes is short d. demand is elastic e. demand is inelastic
Economic progress is best measured by
a. the growth rate of prices over time. b. the growth rate of GDP per capita c. the amount of time it takes a worker to work to afford certain goods and services. d. the growth rate in the population.
If an economist says "the higher the price of oranges, the fewer oranges individuals will buy, ceteris paribus," this means that
A) individuals don't like high-priced oranges. B) as the price of oranges rises, individuals' preferences change and they no longer like oranges as much as they once did. C) as the price of oranges rises, individuals' preferences do not change, nor does anything else, but individuals buy fewer oranges in response to the higher price of oranges. D) the higher the price of oranges, the fewer oranges individuals will buy, assuming that people have economic motives.
In reference to table 22.1, the $600 paid in property taxes counts as
A. A variable cost. B. A normal cost. C. An explicit cost. D. An implicit cost.