For the "Composite Commodity Theorem" to hold, all goods in the composite must:
a. have constant prices.
b. have constant relative prices.
c. be used in fixed proportions.
d. be net complements.
b
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If gold and the dollar are substitutes, a cut in the Japanese discount rate can be expected to
a. appreciate the dollar and decrease the price of gold. b. depreciate the dollar and increase the price of gold. c. depreciate the dollar and decrease the price of gold. d. appreciate the dollar and increase the price of gold.
In order to have a principal agent problem, there always must be
a. A market economy b. A dictator and a subordinate c. The principal has more information than the agent d. The principal and agent have different goals e. Both c and d are correct
The highest-income fifth of the U.S. population earns more than 50 percent of all income.
Answer the following statement true (T) or false (F)
Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis of Table 1.3, in the production range of 2 to 3 combs the opportunity cost of producing 1 more comb in terms of brushes is
A. 0.67. B. 7.0. C. 3.33. D. 0.14.