If there is an increase in income, which of the following is true?
a. The demand for complementary goods decreases.
b. The demand for substitute goods decreases.
c. The demand for normal goods decreases.
d. The demand for normal goods increases.
e. The supply for all goods decreases.
d
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Many communist dictators ban the adoption of new technologies to:
A) enhance economic growth. B) discourage creative destruction. C) encourage creative destruction. D) reduce inequality in income.
Refer to the data provided in Table 17.6 below to answer the following question(s). The table shows the relationship between income and utility for Isabel.Table 17.6 IncomeTotal Utility $00 $40,00020 $80,00050$120,00090$160,000150Refer to Table 17.6. Suppose Isabel has a 25% chance of becoming disabled in any given year. If she does become disabled, she will earn $0. If Isabel does not become disabled, she will earn her usual salary of $160,000. Isabel has the opportunity to purchase disability insurance which will pay her her full salary in the event she becomes disabled. Such an insurance policy be worth ________ to Isabel.
A. $0 B. less than $40,000 but more than $0 C. $40,000 or more D. indeterminate from the given information
A country enjoys an absolute advantage in the production of a good if that good can be produced at a lower cost in terms of other goods.
Answer the following statement true (T) or false (F)
Money ________
A) is always composed of coins and paper B) loses its value as it becomes older C) requires a double coincidence of wants D) is any commodity that is generally acceptable as a means of payment