When an economist points out that you and millions of other people are interdependent, he or she is referring to the fact that we all
a. rely upon the government to provide us with the basic necessities of life.
b. rely upon one another for the goods and services we consume.
c. have similar tastes and abilities.
d. are concerned about one another's well-being.
b
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Which of the following statements draws a false conclusion?
a. Life expectancy in an average African country is lower than in an average European country; therefore Europeans can expect to outlive Africans. b. Nations that currently produce no capital goods, and whose inhabitants are hungry, risk famine with internally funded capital investments. c. Some African nations have substantially more food and capital investment than others; therefore, their standard of living is higher. d. Population reduction policies, if effective, can improve the nation's wealth by increasing real per capita GDP. e. The vicious circle of poverty argument states that poverty precludes capital investment and that no capital investment perpetuates poverty.
Suppose the demand function for cable TV service is given by QCTV = 15 - 0.25 × PCTV + 0.0005 × M + 0.3 × PSTV, where QCTV is the quantity of cable TV demanded (thousands of households), PCTV is the price of cable TV, M is income and PSTV is the price of satellite TV service. We can see that:
A. cable TV and satellite TV are substitutes. B. cable TV and satellite TV are complements. C. satellite TV is a normal good. D. satellite TV is an inferior good.