The belief that tobacco is a "gateway drug" is consistent with
a. the idea that tobacco and marijuana are substitutes.
b. the idea that an increase in income causes a decrease in the demand for tobacco and an increase in the demand for marijuana.
c. the idea that lower cigarette prices are associated with less use of marijuana.
d. most of the available evidence.
d
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Refer to Table 2-1. Which of the following would be a mutually agreeable rate of exchange?
A) 1F = 1C B) 1F = 2C C) 1F = 3C D) No exchange rate would be mutually agreeable.
Price elasticity of demand measures
A) how responsive sales are to a change in buyers' incomes. B) how responsive quantity demanded is to a change in price. C) how responsive sales are to changes in the price of a related good. D) how responsive suppliers are to price changes.
The German Hyperinflation of the early 1920s was caused by
A) large deficits resulting from the high levels of war spending and falling taxes. B) rising oil prices after World War I caused a severe stagflation and hyperinflation. C) an overly aggressive monetary policy implemented to combat a severe recession. D) the German government raising funds for expenditures by selling bonds to the central bank.
An increase in foreign real income would shift the:
A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward.