The price of pizza falls relative to the price of spaghetti, so people buy more pizza instead of spaghetti. This is an example of responding to:
A. marginal science.
B. incentives.
C. disincentives.
D. sunk benefit.
B. incentives.
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In calculating the IS curve, _______ is taken as exogenous
a. the interest rate. b. aggregate income. c. the price level. d. planned investment. e. a and d.
What are social costs? How do they differ from private costs?
What will be an ideal response?
Applying the concept of labor specialization to international trade, if all countries specialize in producing what they do relatively best,
a. each country could become self-sufficient b. international specialization and exchange will benefit the producers but harm the consumers c. consumers are better off, but producers are worse off d. inefficiency in production occurs because specialization, although allowing for moreproduction, causes people to know less about the "big picture" e. there will be more goods produced, exchanged, and consumed
If a goldsmith has 200 gold coins in his safe and there are 400 receipts in circulation, how much is his reserve ratio?
Fill in the blank(s) with the appropriate word(s).