Assume that a college student purchases only Ramen noodles and textbooks. If Ramen noodles are an inferior good and textbooks are a normal good, then the substitution effect associated with a decrease in the price of a textbook, by itself, will result in

a. a decrease in the consumption of textbooks and a decrease in the consumption of Ramen noodles.
b. a decrease in the consumption of textbooks and an increase in the consumption of Ramen noodles.
c. an increase in the consumption of textbooks and an increase in the consumption of Ramen noodles.
d. an increase in the consumption of textbooks and a decrease in the consumption of Ramen noodles.


d

Economics

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International data suggests that countries with different steady states will

a. converge to the same growth rates of output. b. converge to the same per-capita output levels. c. not converge. d. converge to the same steady state in the long-run.

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The Ricardian notion that of diminishing returns implies that

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When economic profits are positive, accounting profits could be:

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Economics