If airfares to Europe were to increase, other things equal, an economist would predict that:
a. most people will not change their travel and vacation plans
b. more individuals will choose to fly to Europe because now it is a more valuable experience.
c. some individuals will substitute toward other travel destinations.
d. airlines will make significantly greater profits.
c
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When households increase their personal savings ________
A) investment decreases B) they are better able to cope with severe economic downturns C) interest rates are likely to rise, as well D) all of the above E) none of the above
Data on the U.S. income distribution suggest that
a. black-white income differentials have decreased b. black-white income differentials have increased c. the distribution of income among blacks is more uneven than the overall distribution of income d. the distribution of income among blacks is less uneven than the overall distribution of income e. the distribution of income among blacks follows approximately the same pattern as the overall distribution of income