In the above figure, if the budget line shifts from RT to RS, the substitution effect is illustrated by the move from
A) a to b.
B) a to c.
C) b to c.
D) T to S.
A
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The distinction between public health problems and private health problems becomes blurred when _____
a. externalities are positive b. preferences are quasi-linear c. health insurance is unavailable d. health care spending is from public coffers
A demand curve:
a. has a positive slope. b. illustrates the negative relationship between price and quantity demanded. c. illustrates the positive relationship between price and quantity demanded. d. is based on the assumption of a stable supply curve. e. shifts about in a random fashion.
When an economist points out that you and millions of other people are interdependent, he or she is referring to the fact that we all
a. rely upon the government to provide us with the basic necessities of life. b. rely upon one another for the goods and services we consume. c. have similar tastes and abilities. d. are concerned about one another's well-being.
Suppose California and Wisconsin produce wine and cheese. Making a bottle of wine costs $3 in California, but $12 in Wisconsin. On the other hand, making a pound of cheese costs $4 in California, and $8 in Wisconsin. Under these conditions,
A. California should export wine and Wisconsin should export cheese. B. California should export cheese and Wisconsin should export wine. C. California should export both wine and cheese. D. the two states cannot gain from trade with each other until a third state starts to export bottle openers.