Suppose that if the price of plane tickets increased, more people would choose to travel by train. If this happened, you would know that:
A. the cross-price elasticity between plane tickets and train tickets is negative.
B. plane tickets are an inferior good.
C. the cross-price elasticity between plane tickets and train tickets is positive.
D. plane tickets and train tickets are complements.
Answer: C
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The figure above shows the U.S. production function. How would an increase in income taxes be shown in the figure?
A) a movement from point C to point B B) a movement from point A to point B C) an upward shift or rotation of the production function D) a downward shift or rotation of the production function E) None of the above because the effects of an increase in taxes cannot be shown in the figure.
It is absolutely necessary for at least one trader to have money for barter exchange to take place
a. True b. False Indicate whether the statement is true or false