Pizza is a normal good. In the above figure, the shift in the demand curve from D to D2 can be the result of
A) a decrease in the price of soda, a complement to pizza.
B) an increase in the price of hamburgers, a substitute for pizza.
C) a decrease in income.
D) a study that shows that pizza is a very healthy food.
E) an increase in the cost of producing pizza.
C
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In most cases, expenditure-switching policies must be accompanied by expenditure-reducing policies because
A) expenditure-switching policies are completely ineffective without expenditure-reducing policies. B) inflation ensues as home country domestic expenditures switch away from foreign goods to domestic goods unless overall expenditures are reduced. C) inflation abroad may increase the demand for domestic goods, causing inflation to rise. D) the depreciation in the exchange rate may decrease the domestic price of foreign goods, causing an increase in the current account deficit. E) None of the above.
Financial intermediaries develop ________ in things such as computer technology which allows them to lower transactions costs
A) expertise B) diversification C) regulations D) equity
In a company, if high-ability workers get paid $80,000, while low-ability workers get paid $50,000, the education (MBA) that can qualify the workers as high-ability ones cost $20,000
What's the highest share of high-ability workers to get a separating equilibrium? A) 1/4 B) 1/3 C) 1/2 D) 1
Central banks can increase the money supply by:
a. Buying government securities. b. Selling foreign exchange. c. Raising margin requirements. d. All of the above. e. None of the above.