Suppose a consumer is currently spending all of her available income on two goods: music CDs and DVDs. If the price of a CD is $9, the price of a DVD is $18, and she is currently consuming 10 CDs and 5 DVDs, what is the consumer's income?
a. $90
b. $180
c. $270
d. $360
b
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Even though points inside a production possibilities curve are attainable, why are they not preferred?
What will be an ideal response?
The effect of a change in price on the quantity bought when the consumer remains indifferent between the original and the new situation is called the
A) income effect. B) indifference effect. C) substitution effect. D) demand effect.
When a country that exported a particular good abandons a free-trade policy and adopts a no-trade policy,
a. producer surplus increases and total surplus increases in the market for that good. b. producer surplus increases and total surplus decreases in the market for that good. c. producer surplus decreases and total surplus increases in the market for that good. d. producer surplus decreases and total surplus decreases in the market for that good.
The n-R-squared statistic also refers to the:
A. F statistic. B. t statistic. C. z statistic. D. LM statistic.