Consumption bundles that lie above the boundary established by the budget line:
A. are affordable for the consumer.
B. are preferred by the consumer but are not affordable.
C. are not preferred by the consumer.
D. do not exhaust the consumer's income.
B. are preferred by the consumer but are not affordable.
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Orange juice and cranberry juice are substitute goods. An increase in the price of orange juice results in a(n)
a. increase in the demand for orange juice b. increase in the supply of cranberry juice c. increase in the quantity demanded of orange juice d. increase in the demand for cranberry juice e. decrease in the quantity demanded of cranberry juice
The Incentive Principle is an example of:
A. a normative economic principle. B. a positive economic principle. C. an economic decision-making pitfall. D. over-estimating the benefits of an action.
Which statement is true?
A. Most oligopolies have many firms. B. The U.S. auto industry has a concentration ratio of 50 percent. C. Administered prices are most likely to occur under monopoly. D. In the U.S. today collusion is illegal but nevertheless still exists.
Firms in an economy with high capital costs have an incentive to use more ________ techniques.
A. capital-dependent B. labor-saving C. capital-intensive D. labor-intensive