When oranges increase in price, the income effect
A) decreases the consumption of oranges only if oranges are a normal good.
B) decreases the consumption of oranges only if oranges are an inferior good.
C) always increases the consumption of oranges.
D) always decreases the consumption of oranges.
A
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Ryan saved $50,000 last year in his bank account so that he could buy a car this year. In this case, money served the function of a ________
A) unit of account B) means of deferred payment C) store of value D) medium of exchange
The natural rate of unemployment is comprised of
A) frictional and cyclical unemployment. B) frictional and structural unemployment. C) cyclical and structural unemployment. D) frictional, cyclical, and structural unemployment.
Exhibit 30-3 Costs of Eliminating:Firm A Firm B Firm C 1st ton of pollution$ 30 $ 50 $ 600 2nd ton of pollution$ 70 $ 90 $ 700 3rd ton of pollution$125 $150 $ 900 4th ton of pollution$200 $250 $1,300 Refer to Exhibit 30-3. Suppose that Firms A, B, and C are the only polluters in the state and that each emits 4 tons of pollution into the atmosphere. To cut the level of pollution the government imposes an emission tax of $300 per ton of pollution. As a result of this tax, Firm A would _________________, firm B would ____________________ and firm C would __________________.
A. not reduce any of its pollution; not reduce any of its pollution; reduce all 4 tons of its pollution B. reduce all 4 tons of its pollution; only reduce 1 ton of its pollution; not reduce any of its pollution C. reduce all 4 tons of its pollution; reduce all 4 tons of its pollution; not reduce any of its pollution D. not reduce any of its pollution; reduce 3 tons of its pollution; reduce all 4 tons of its pollution
A change in inflation leads to shifts of the ________ curves
A) MP, IS, & AD B) MP & IS, but not AD C) IS & AD, but not MP D) MP, but not IS nor AD E) none of the above