JoAnn considers cola and plain sparkling water to be good substitutes. Suppose the price of sugar, a key ingredient used to produce cola, falls. According to the income effect, which of the following is most likely to occur?
a. JoAnn will purchase less cola and more sparkling water.
b. JoAnn will purchase more cola and less sparkling water.
c. JoAnn will purchase more of most goods due to her higher real income.
d. JoAnn's demand curve will decrease (shift in), causing her to purchase less cola.
c
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One aspect of bank accounting is that many liabilities of banks are
A. assets of other persons and businesses in the economy. B. also liabilities of other persons and businesses in the economy. C. not matched by liabilities of most other banks. D. not actually owed to any other person or business in the economy.
In August of this year, Jack can best estimate the current year's GDP by:
A. adjusting the first two quarterly estimates of GDP for seasonal variation. B. taking an average of the last four quarterly estimates of GDP available. C. multiplying the most recent quarter's GDP estimate by four. D. looking back at previous years GDP in order to make an accurate projection.
A six-month decline in GDP is known as a
A. depression. B. productivity increase. C. recession. D. trade deficit.
Refer to the information provided in Table 20.1 below to answer the question(s) that follow. Table 20.1
Refer to Table 20.1. In Mexico, the opportunity cost of 1 bushel of oranges is
A. 1/2 bushel of bananas. B. 1 bushels of bananas. C. 2 bushels of bananas. D. 5 bushels of bananas.