In the United States, professional football players earn much higher incomes than professional soccer players. This occurs because:
A. most football players are good soccer players while the reverse is not true.
B. consumers have a greater demand for football games than for soccer games.
C. football and soccer games are highly substitutable products for most consumers.
D. the marginal productivity of soccer players exceeds that of football players.
Answer: B
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The demand curve slopes downward because of:
a. diminishing marginal utility and consumer equilibrium. b. the fact that consumers cannot decide how much they want to pay for goods and services. c. the fact that suppliers cannot decide how much to charge for the goods and services they supply. d. the fact that consumer tastes and preferences change rapidly. e. the fact that consumers are fickle, which makes pricing a good or service very difficult.
The personal income tax varies as GDP changes.
Answer the following statement true (T) or false (F)
Suppose Ethan and Ava work in a farm that grows apples and oranges of the same size. In one hour, Ethan can pick 6 pounds of apples or 1 pound of oranges. Ava can pick 8 pounds of apples or 1 pound of oranges. It can be concluded that
A. Ethan has a comparative advantage in picking apples. B. Ava has an absolute advantage in picking oranges. C. Ethan has an absolute advantage in picking apples. D. Ava has a comparative advantage in picking apples.
The production possibility frontier is used to illustrate the concept of
A. the laissez-faire economy. B. opportunity costs. C. aggregate demand. D. equilibrium.