The relationship between MPC and MPS is
a. 1 + MPC = MPS
b. 1 – MPC = MPS
c. 1 + MPS = MPC
d. MPC – MPS = 1
e. MPS – MPC = 1
B
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Research indicates that which one of the following factors likely gave rise to increased obesity in the U.S.?
(a) Advancements in modern cooking technology (b) Increased consumption of restaurant and fatty foods (c) A shift from exercise in leisure to labor (d) All of the above
Club Med, which operates a number of vacation resorts, offers vacation packages at a lower price in the winter (i.e., the "off season") than in the summer. This practice is an example of:
A) peak-load pricing. B) intertemporal price discrimination. C) two-part tariff. D) bundling. E) Both A and B are correct.
Producers want to calculate the price elasticity of demand because they want to:
A. know the goods and services for which consumers are most sensitive to price changes. B. be able to predict the future preferences of their customers. C. know that consumers will have the same response to a price change regardless of the good or service. D. understand what goods their customers dislike the most.
If U.S. prices increase relative to the rest of the world, we would expect imports:
A. to increase and exports to fall. B. to decrease and exports to increase. C. as well as exports to increase. D. as well as exports to decrease.