If frost in Florida reduces the quantity of vegetables sold by 20 percent and increases their retail price by 30 percent, one can conclude that:
A. the demand has shifted to the right along a perfectly inelastic supply curve.
B. the supply of vegetables has shifted to the left along an inelastic demand curve.
C. the demand has shifted to the right along a perfectly elastic supply curve.
D. the supply of vegetables has shifted to the left along an elastic demand curve.
Answer: B
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The above figure shows Jane's budget line and two of her indifference curves. If the price of a lobster dinner falls so that Jane can now purchase the combination represented by Point B, Jane would experience
A) an increase in the opportunity cost of a lobster dinner. B) no change in her marginal rate of substitution. C) an income and a substitution effect. D) Both answers B and C are correct.
Taking action to reveal one's own private information is called:
A. screening. B. signaling. C. statistical discrimination. D. proofing.
The argument for using protectionism to bring about industrialization in developing countries presumes that gains will occur because the industry will become internationally competitive.
a. true b. false
If Gross Domestic Product (GDP) and other national income accounts are expressed in nominal values, then they are
A. measured in constant prices instead of actual market prices. B. measured in real values. C. readily comparable to Gross Domestic Product (GDP) figures for other years. D. measured in market prices at which goods actually sold.