How does a decrease in the price of good X affect the market rate of substitution between goods X and Y?
A. It increases.
B. It remains unchanged.
C. It decreases.
D. Indeterminable without more information.
Answer: C
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The circular flow of income shows that GDP can be measured as the sum of wages, interest, rent, and profits received by households or total expenditures on goods and services by households, firms, government, and the rest of the world
Indicate whether the statement is true or false
If the insurance company can correctly anticipate the adverse selection,
a. Only Samantha would buy insurance b. Only Nadia would buy the insurance c. Both of them would buy the insurance d. Neither of them would buy the insurance
Bob's new startup goes public and sells shares of future profits. Bob's startup is best described as a a. saver or as a supplier of funds
b. saver or as a demander of funds. c. borrower or as a supplier of funds. d. borrower or as a demander of funds.
Scarcity arises because
A) resources are limited and are inadequate to meet all human wants. B) shortages occur in some markets. C) natural resources are abundant. D) some people do not behave in a rational manner.