As coffee becomes more expensive, Joe starts drinking tea instead of coffee. This is called:
A. a decrease in reservation price.
B. the substitution effect of a price change.
C. the income effect of a price change.
D. a decrease in demand.
Answer: B
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In 2016, national defense accounted for almost _____ of federal outlays
a. 25 percent b. 15 percent c. 40 percent d. 54 percent e. 60 percent
In Western nations, the desire for the incredible fruits of the materialist world may often
a. lead to very low opportunity costs of foreign aid b. lead to low birth rates and high death rates c. lead to an abandonment of the LDCs d. come at the expense of tradition e. lead to very high opportunity costs of innovation
According to the article "Why Gold?', silver may be used as money. One problem with using silver as money is that
a. silver is too abundant. b. silver tarnishes over time. c. it is not a precious metal. d. it has a high melting point.
Which of the following would cause E1 to move to E2?
a. P1 moving to P2 and D2 moving to D1
b. S1 moving to S2 and Q2 moving to Q1
c. P1 moving to P2 and Q1 moving to Q2
d. S1 moving to S2 and D2 moving to D1