Robinson Crusoe is stranded on an island. He finds that coconuts are freely available (zero harvest cost), but fish are difficult to harvest and require a lot of energy. As a result, harvesting fish has a high price. If coconuts and fish are imperfect substitutes, what is Robinson Crusoe likely to consume?
A) He will consume more coconuts than fish.
B) He will consume more fish than coconuts.
C) He will consume equal amounts of both goods.
D) Not enough information is given.
D
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If there is an increase in the price of broccoli because of disastrous weather that destroys about half of this year's spinach crop, which of the following could be TRUE?
A) The cross elasticity of demand between spinach and broccoli is negative 1.25. B) The demand curve for broccoli has shifted rightward and the cross elasticity of demand between spinach and broccoli is positive. C) The demand curve for spinach has shifted to the leftward and the cross elasticity of demand between spinach and broccoli is positive. D) The demand curves for spinach and broccoli have become more cross inelastic.
The purpose of the disclosure requirements of the Securities and Exchange Commission is to
A) increase the information available to investors. B) prevent bank panics. C) improve monetary control. D) protect investors against financial losses.
Baseballs cost $5 each and baseball gloves cost $20. Assume you have $100 to spend on these items. Putting baseballs on the vertical axis,what is the slope of the budget line?
What will be an ideal response?
The Federal Reserve can directly affect its monetary policy ________, which then affect its monetary policy ________
A) goals; targets B) goals; tools C) targets; goals D) targets; tools