The above figure shows Bobby's indifference map for soda and juice. B1 indicates his original budget line. B2 indicates his budget line resulting from a decrease in the price of soda. What change in quantity best represents his substitution effect?
A) 3
B) 10
C) 15
D) 7
A
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If the growth of the quantity of money is 5 percent per year, potential and real GDP grow at 3 percent per year, and velocity does not change, in the long run what is the inflation rate?
What will be an ideal response?
In a market system, the what, how and for whom questions in economics are determined by
A) those who are not in the market. B) buyers and sellers together. C) the central authority. D) no one.
Between 1864 and 1900, the largest portion of railroad track (as a percentage of total annual construction) was laid in which region of the U.S.?
a. the Southeast b. the Northeast c. the Pacific Northwest d. the Great Plains region
In general, when the quantities of a complementary resource are increased, the productivity of the other resources
A. rise. B. fall. C. remain the same.