Apples are a normal good, so if the price of an apple increases from 50¢ to 60¢, the quantity of apples demanded decrease because of
A) the substitution effect only.
B) the income effect only.
C) a change in income.
D) the substitution and income effects.
D
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Income inequalities are greatest in
A. Poor countries. B. Highly developed countries. C. Countries with many factors of production. D. Rich countries.
A downward-sloping portion of a long-run average total cost curve is the result of:
A. economies of scale. B. diseconomies of scale. C. diminishing returns. D. the existence of fixed resources.
The prisoner's dilemma shows that
A) players are better off if they act independently. B) a game always ends in a positive sum condition. C) people will always cheat. D) players could be better off if they cooperated.
In a fiduciary monetary system, the value of the money issued by a government is based on
A. public confidence in that currency's acceptability and predictability of value. B. the gold held in that government's vaults. C. its being made out of some material with a market value equal to a bill's face value. D. the ability to convert it to some valuable commodity.