Which of the following offers the best example of derived demand?
A. An increase in the demand for movie tickets causes an increase in the demand for popcorn.
B. An increase in demand for movie tickets causes an increase in the demand for movie theatre workers.
C. A decline in the demand for cars causes an increase in the demand for bus rides.
D. An increase in the demand for cars causes an increase in the demand for gasoline.
B. An increase in demand for movie tickets causes an increase in the demand for movie theatre workers.
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Decision making is a process, what is the first step?
a. Define the decision b. Estimate resources c. Consider alternatives d. Imagine consequences
Nevada is the low opportunity cost producer of computer software, and California is low opportunity cost producer of wine. Which of the following is true?
a. Nevada has no comparative advantage over California in the production of wine or computer software. b. Nevada has a comparative advantage in producing wine c. Nevada has a comparative advantage in producing software. d. Nevada has a comparative advantage in producing both wine and software.
Neoclassical economics and behavioral economics:
A. are generally viewed as complementary, together providing better understanding of economic behavior than each could on its own. B. are diametrically opposed to each other. C. generally address different issues in economics, and therefore rarely intersect on the same topic. D. both start from the premise that people are fundamentally rational in their decision making.
Recall the Application about productivity in the nation of Latvia in the 1990s to answer the following question(s). According to this Application, workers in the EU were more productive than workers in Latvia in the 1990s, yet EU nations still purchased products from Latvia. This is because Latvia ________ in the production of the products it sold to EU nations.
A. had an absolute advantage B. had a comparative advantage C. used fewer resources D. had a higher opportunity cost