The price of cereal rises. As a result, people have cereal for breakfast on fewer days and eat eggs instead. This behavior is an example of
A) a decrease in the quantity demanded of cereal because of the substitution effect.
B) an increase in the quantity demanded of eggs because of the income effect.
C) a decrease in the quantity supplied of cereal because of the substitution effect.
D) an increase in the quantity supplied of eggs because of the income effect.
A
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Most MNEs generate a large portion of their revenues in their home regions.
a. true b. false
International dumping occurs when:
a. monopolistic firms charge the same price in domestic and foreign markets. b. monopolistic firms charge a higher price in the domestic market and a lower price in the foreign market. c. monopolistic firms charge a lower price in the domestic market and a higher price in the foreign market. d. domestic monopolistic firms relocate operations abroad.
Which of the following is a transfer payment?I.Social SecurityII.Unemployment benefits
A. I only B. II only C. Both I and II D. Neither I nor II
Suppose that a bond having no expiration date has a face value of $10,000 and pays a fixed amount of interest of $1000 annually. Compute and enter in the spaces provided either the effective interest rate which a bond buyer could receive at the new price or the bond price (rounded to the nearest $1000) required to receive the interest rate shown.
