Let C = 40 + 0.8y and I = 10. Autonomous consumption is
A) 10. B) 32. C) 40. D) 50.
C
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Economists may disagree about how to solve an economic problem because they
A. use different models to analyze the problem and its solutions. B. have different political and moral beliefs. C. disagree about the facts of the situation. D. All of these responses are correct.
In case of a decrease in product prices:
A) the quantity effect always dominates the price effect. B) the price effect always dominates the quantity effect. C) when the price effect dominates the quantity effect, total revenue increases. D) when the quantity effect dominates the price effect, total revenue increases.
In labor economics, the term "customer discrimination" refers to a situation where customers are charged different prices for services rendered by a firm
Indicate whether the statement is true or false
Economists normally
a. do not try to explain people's tastes, but they do try to explain what happens when tastes change b. believe that they must be able to explain people's tastes in order to explain what happens when tastes change. c. do not believe that people's tastes determine demand, so they ignore the subject of tastes. d. incorporate tastes into economic models only to the extent that tastes determine whether pairs of goods are substitutes or complements.