The substitution effect refers to
A) the law of diminishing marginal utility.
B) the want-satisfying power of a good or service.
C) substitution of less expensive commodities for more expensive commodities.
D) the change in purchasing power when the price of a good changes.
Answer: C
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The ability to use one resource to provide different products and services is
A) economies of scale. B) economies of scope. C) diversification. D) vertical integration.
Which of the following is an essential component of the ladder of opportunity?
a. Effective education system b. Safety net policies and programs c. Consistent redistribution efforts d. High social rates of return
A pack of chocolates purchased by Monica from a shop is an example of a _____
a. merit good b. club good c. public good d. private good
Identify the correct formula for the GDP price index
a. Normal GDP x 100Real Prices b. Real Prices x 100Nominal GDP c.Nominal GDP x 100Real GDP d.Real GDP x 100Nominal GDP