In Table 9.2, Market 3 would be in equilibrium if buyers believed plums account for:
A. 30% of the market.
B. 40% of the market.
C. 50% of the market.
D. 60% of the market.
Answer: C
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Which of the following describes the Giffen good case? When the price of the good
A) rises, the income effect is opposite to and greater than the substitution effect, and consumption falls. B) falls, the income effect is in the same direction as the substitution effect, and consumption rises. C) falls, the income effect is in the opposite direction to the substitution effect, and consumption falls. D) falls, the income effect is in opposite direction to the substitution effect and consumption rises. E) Both A and D are correct.
A student has not yet graduated from school but is looking for a job. Is the student considered to be in the labor force? Why or why not?
Which of the following do unions not cause?
a. frictional unemployment b. the wage to rise above the equilibrium level c. conflict between insiders who benefit from high union wages and outsiders who do not get the union jobs d. reduced wages in industries without unions
Assuming a market rate of interest equal to 7 percent and anticipated inflation is 2 percent, what is the real (adjusted for inflation) present value of $200 to be received one year from today?
A) $190 B) $214 C) $187 D) $210