Refer to Scenario 3.1. If the price of potato chips is $0.50 and the price of Cola is $4.00, and Andy has an income of $14.50, how many units of potato chips will he consume?

President Clinton, at the beginning of his administration, increased personal income taxes on individuals with relatively high incomes. How will this change the consumption schedule?

A. It will shift and become steeper. B. It will shift and become flatter. C. It will shift in a parallel manner. D. It will remain fixed as the economy moves along the schedule.

Critics of the "limits to growth" thesis argue that:

A. clean air and water is a luxury good and the more economically developed a country becomes the easier it will be to keep the environment clean. B. economic growth will always take the form of more of what we have now, rather than newer, better, and cleaner goods and services. C. the market is not capable of adjusting to shortages of resources. D. government action spurred by political pressure is the best way to avoid the depletion of natural resources and pollution of the environment that results from economic growth.