?Kites /hourSnowboards /hourJesse81April123
Based on the data in Table 3.1, if Jesse and April choose to specialize and trade, then:
A. April will specialize in painting kites and trade kites for snowboards.
B. April will specialize in painting snowboards and trade snowboards for kites.
C. Jesse will specialize in painting snowboards and trade snowboards for kites.
D. None of these; specialization and trade are not beneficial for Jesse and April.
Answer: B
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Which of the following statements is true?
a. When a change in income causes consumption to change, the consumption-income line shifts; however, when anything besides income changes, we move along the line. b. When a change in income causes consumption to change, we move along the consumption-income line; however, when anything besides income changes, the line shifts. c. When income or anything else affecting consumption changes, we move along the consumption-income line. d. When income or anything else affecting consumption changes, the consumption-income line shifts. e. There is no way to determine, without more information, whether a change in income or anything else will shift the consumption line or cause movement along the consumption-income line.
Consider a town with three residents. The residents' demand curves for various acres of a public park are shown below.
The public's willingness to pay for the 2nd acre of parkland is ________.
A. $14. B. $8. C. $6. D. $26.
If the quantity of rental units increases by 10 percent when the monthly rental price doubles, the supply of rental units, other factors held constant, is:
A. elastic. B. inelastic. C. perfectly elastic. D. perfectly inelastic.
Government intervention to alter market structure or prevent abuse of market power is the basic purpose of
A. Antitrust policy. B. Social demand. C. Government taxes. D. Merit goods.