Refer to Scenario 14-1. M2 in this simple economy equals
A) $3,000. B) $8,000. C) $14,000. D) $21,000.
D
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Which nation is one of the few African island nations to encourage international trade in government-supported special economic zones (SEZ)?
a. Madagascar b. Mali c. Mauritania d. Mauritius
Refer to Figure 6.1. Assume that L1 represents the budget line before a price change. Point C represents the:
A. uncompensated effect on an increase in the price of soup.
B. compensated effect on a decrease in the price of soup.
C. uncompensated effect on a decrease in the price of soup.
D. compensated effect on an increase in the price of soup.
Walter builds birdhouses. He spends $5 on the materials for each birdhouse. He can build one in 30 minutes. He is semi-retired but earns $8 per hour at the local hardware store. He can sell a birdhouse for $20 each. An accountant would calculate the total cost for one birdhouse to be
a. $5. b. $8. c. $9. d. $13.
When Stanley has an income of $1,000 . he consumes 30 units of good A and 50 units of good B. After Stanley's income increases to $1,500, he consumes 60 units of good A and 45 units of good B. Which of the following statements is correct?
a. Both goods A and B are normal goods. b. Both goods A and B are inferior goods. c. Good A is a normal good, and good B is an inferior good. d. Good A is an inferior good, and good B is a normal good.