Biology Forums - Study Force

Assume that coffee and tea are substitutes. Given a downward sloping demand curve for tea, an increase in the price of tea will cause
 
  A) an increase in the demand for coffee.
  B) a decrease in the demand for coffee.
  C) a leftward shift of the demand curve for tea.
  D) a leftward shift in the demand for coffee.

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Ques. 2

The idea that people will not consciously make decisions that make them worse off is known as
 
  A) rationality assumption.
  B) the decision duality.
  C) Adam Smith's doctrine.
  D) incentive assumption.

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Ques. 3

If demand and supply both decrease
 
  A) the equilibrium quantity definitely will decrease, and the market clearing price definitely will decrease.
  B) the equilibrium quantity definitely will decrease, and the market clearing price definitely will increase.
  C) the market clearing price definitely will decrease, but the change in the equilibrium quantity cannot be determined without more information.
  D) the equilibrium quantity definitely will decrease, but the change in market clearing price cannot be determined without more information.

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Ques. 4

Social Security taxes are regressive because
 
  A) they apply only to rich people.
  B) they are not applied to income beyond a certain amount.
  C) they are applied to welfare recipients.
  D) they are applied to retired people only.

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Ques. 5

Using the above table, what is the opportunity cost of moving from alternative C to alternative B?
 
  A) 1/2 a pizza pie
  B) 60 pizza pies
  C) 90 pizza pies
  D) 30 pizza pies

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Ques. 6

In the current year, a nation's government spending equals 15 trillion and its revenues are 20 trillion. Which of the following is TRUE?
 
  A) The nation's national debt equals 5 trillion.
  B) This nation has a current year budget surplus of 5 trillion.
  C) This nation is currently running a budget deficit of 5 trillion.
  D) The nation has a current year trade surplus of 5 trillion.

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Thanks a whole bunch