The French Bakery ran a special which decreased the price of its croissants from $1.50 to $1.00. Although her money income had not changed, Toni decided to buy 2 croissants instead of her usual 1 bagel and 1 croissant
Toni's actions are explained by which of the following?
A) income and substitution effects
B) price effect
C) consumption effect
D) income effect only or substitution effect only but not both effects
A
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Once a monopoly has determined how much it produces, it will charge a price that
A) is determined by the intersection of the marginal cost and average total cost curves. B) minimizes marginal cost. C) is determined by its demand curve. D) is independent of the amount produced. E) is equal to its average total cost.
The ultimatum game and the dictator game are used in economic experiments to test whether fairness is an important influence on consumer decision-making
Indicate whether the statement is true or false
Which of the following is the best example of an automatic stabilizer?
a. Welfare payments. b. Foreign aid c. Defense spending. d. Highway construction.
The key to understanding trade balances is to understand the relationships between flows of trade and flows of international___________________________.
a. relocation b. goodwill c. shipments d. payments