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71 Cards in this Set
- Front
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T or F: If the average hourly wage for workers in America is slighly lower in 2015 than it was in 2014, this fact necessarily means that at least some workers in America are being paid lower hourly wages in 2015 than were paid in 2014 |
False |
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Which one of the following statements is false: A) James Buchanan and Gordon Tullock were pioneering scholars in the economics public choice. B) Ceteris paribus, a rise in the price of cans of Coca-cola will reduce the quantity demanded of Coca-cola C) The demand for iTunes music downloads becomes less elastic the more time consumers have to adjust to any changes in the price of itunes music downloads D) Ceteris paribus, a decrease in the supply of beef will raise the price of beef E) The person most commonly credited with having first explained the principle of comparative advantage is David Ricardo |
C) The demand for iTunes music downloads becomes less elastic the more time consumers have to adjust to any changes in the price of itunes music downloads false because with time it would be more elastic |
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T or F: Goods M and N are economic complements to each other if, as the price of M rises, the demand for N rises |
False |
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Here are the maximum amounts of grapes and figs that Candace and Vernon can each produce each month: Candace- 100lbs grapes and 33 lbs figs Vernon- 75 lbs grapes and 15 lbs Figs Who has a comparative advantage at producing figs? |
Candace- she has a 3:2 advantage over vernon |
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The "amount comsumers actually get" of good X (as determined on a diagram showing the supply of, and the demand for X) A) rises as the price of X falls farther and farther below X's equilibrium price B) falls as the price of X falls farther and farther below X's equilibrium price C) rises as the price of X rises higher and higher above X's equilibrium price D) is unaffected by whether or not the price of X is at it's equilibrium level |
B) what consumers actually get falls as the price of X falls farther and farther below X's equilibrium price
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Which of the following holding all else unchanged will cause the equilibrium price of fish to fall? A) a rise in the wages paid to fishermen B) a fall in the wages paid to fishermen C) a rise in the demand for fish D) a fall in the quantity demand of fish |
B) a fall in the wages paid to fishermen
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Which of the following changes in the supply or in the demand for leather uphoistered furniture will cause the price of cloth upholstered furniture to rise? see graph. They are substitutes for one another A) Right shift in supply B) Left shift in demand C) Left shift in supply D) Right shift in demand |
C) Left shift in supply
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Which of the following facts- assuming that they are true explains why the maximum amounts of grape and figs that Candace can produce each month? A) the climate and soil in the part of the world where Candace lives is better for ag than the climate where Vernon lives B)Candace has more access than Vernon to lots of "capital" machinery and technology for growing ag products C) both A and B are possible explanations D) Neither |
C) both A and B are possible explanations
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A policy of free trade is best expressed by which of the following sentence? A) trade is free when the government freely prevents its citizens from buying goods and services from foreigners B) trade is free when imports are free that is have a price of zero C) trade is free when each country has no trade deficit D) trade is free when government imposes no tax or other restrictions on its citizens commerce with foreigners that it doesn't put on its citizens commerce with each other. |
D) trade is free when government imposes no tax or other restrictions on its citizens commerce with foreigners that it doesn't put on its citizens commerce with each other.
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If in 2015 Denmark has a current-account surplus of $2.268 billion, then in 2015 Denmark has a capital account of? A) surplus of 2.268 billion B) deficit of 2.268 billion C) surplus of at least 2.268 billion (possibly higher) D) deficit of 2.268 billion (possibly higher) |
B) deficit of 2.268 billion
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For an ordinary American consumer today, which of the following goods likely has the highest elasticity of demand? A) a new Toyota Camry automobile B) chewing gum |
A) a new Toyota Camry automobile
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A Lady Gaga concert A) is not a public good because it is excludable B) is a public good because it is non-rivalrous in consumption C) is a public good because it is non-excludable D) is not a public good because it is rivalrous in consumption |
A) is not a public good because it is excludable
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Ceteris paribus, which of the following situations will not cause the price of cat food to rise? (Assume that ther is no government imposed ceiling or floor on the price of cat food). A) the price of cat food currently is below its equilibrium level B) the demand for cat food rises C) the supply of cat food rises D) cat food is a normal good, and consumers incomes rise E) None of the above |
C) the supply of cat food rises
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Many economists believe that owners of textile mills in the American northeast in the 1930s lobbied hard for a nationally legislated "minimum wage" because they A) wanted to take away from textile mills in the American south the chief cost advantage that the southern mills had over northern mills. B) wanted to force themselves and their fellow owners of northern mills to treat their northern workers better C) cared deeply for poor southern workers D) it's a myth; owners of textile mills in the American northeast opposed a nationally legislated minimum wage |
A) wanted to take away from textile mills in the American south the chief cost advantage that the southern mills had over northern mills.
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If R is an inferior good, A) a rise in consumer income will reduce the demand for R B) a fall in consumer income will reduce the demand for R C) a rise in consumer income will reduce the supply for R D) a fall in consumer income will reduce the supply for R |
A) a rise in consumer income will reduce the demand for R
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Which of the following statements is true? A) A fall in the price of plywood will result in an increased supply of plywood. B) A rise in the price of plywood will result in an decrease supply of plywood. C) If beer brewed in Germany is a substitute good for beer brewed in the U.S, an increase in the supply of beer brewed in Germany will cause the price of beer brewed in America to fall. D) If beer brewed in Germany is a substitute good for beer brewed in the U.S, an increase in the supply of beer brewed in Germany will cause the price of beer brewed in America to rise. E) None of the above |
C) If beer brewed in Germany is a substitute good for beer brewed in the U.S, an increase in the supply of beer brewed in Germany will cause the price of beer brewed in America to fall.
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Economists case for free trade depends upon which of the following statements being true? A) no worker ever loses his or her current job because of an increase in imports B) Free trade generates high and rising current-account surpluses in the domestic economy C) Free trade generates both current-account and capital account balances of $0, year in and year out D) non of the above |
C) Free trade generates both current-account and capital account balances of $0, year in and year out |
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The body of economic though about international trade that was challenged by Adam Smith in his 1776 book An Inquiry Into the Nature and Causes of the Wealth of Nations is known today as A) public-choice economics B) Marxism C) mercantilism D) free trade |
C) mercantilism
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Among the beliefs of those persons who subscribed to the economic doctrine of ______ is that: A) A country should try to export as many goods and services as possible and import as few goods and services as possible B) a country should try to import as many goods and services as possible and export as few goods and services as possible C) the best policy is one of free trade D) none of the above |
A) A country should try to export as many goods and services as possible and import as few goods and services as possible
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According to Adam Smith, wealth is A) gold and silver in private hands B) gold and silver in your governments hands C) a powerful government with n invincible army and an opulent court D) goods and services widely available to the masses of ordinary men and women |
D) goods and services widely available to the masses of ordinary men and women
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The U.S. Export-Import Bank uses taxpayer money to subsidize foreigners purchases of U.S. exports; the goal is to enable American producers to export more than they would export without the U.S Bank. Which of the following economic doctrines is most likely to justify the activities of the U.S. Bank? That is, adherents of which of the following economic doctrines are most likely to insist that the activities of the U.S Export Bank make America as a country richer? A) public-choice economics B) Mercantilism C) Adam Smiths case for free trade D) All of the above |
B) Mercantilism
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The U.S. Export-Import Bank uses taxpayer money to subsidize foreigners purchases of U.S. exports; the goal is to enable American producers to export more than they would export without the U.S Bank. Which of the following economic doctrines is most likely to explain that the U.S. Bank makes Americans as a group poorer because this Bank gives special privileges to a relatively small, concentrated group with the cost spread out over a large group?
A) public-choice economics B) Mercantilism C) Adam Smiths case for free trade D) All of the above |
C) Adam Smiths case for free trade
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A Condorcet winner A) is the person who decides on the order of voting under a rule of pair wises voting B) someone who profits by buying low and selling high C) is an option for voters that will win the election regardless of who the vote is conducted D)never exists |
C) is an option for voters that will win the election regardless of who the vote is conducted
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According to economists, among the potential downside-harms-of rent control is A) a shortage of rental units B) a decline in the quality of rental units C) greater discrimination by landlords in choosing tenants D) all the above E) none of the above |
D) all the above
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If greedy spectators come to believe that supplies of corn over the next month will fall dramatically to unusually low levels, these speculators will if they are not prohibited by government from doing so take actions today that A) cause the price of corn today to fall lower and the price of corn next month to rise higher, than these prices would if speculators did nothing B) cause the price of corn today and next month to fall lower than these prices would if speculators did nothing C) cause the price of corn today to rise higher and the price of corn next month to fall lower, than these prices would if speculators did nothing D) cause the price of corn today and next month to rise higher than these prices would if speculators did nothing |
A) cause the price of corn today to fall lower and the price of corn next month to rise higher, than these prices would if speculators did nothing
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The process of buying and selling whose occurrences is at the heart of the "law of one price" is called A) agenda setting B) arbitrage C) mercantilism D) condorcet trade |
B) arbitrage
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According to the economic analysis a potential downside harm of the minimum wage is that it: A) causes higher unemployment among unskilled workers B) encourages racial and other forms of discrimination in hiring C) causes employers to work their low wage workers harder D) all of the above E) none of the above |
D) all of the above
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According to supply and demand analysis, which of the following groups of people is most likely to enjoy only benefits and to suffer no harm if the minimum wage rises? A) low skilled workers whose current wages are below the new, higher min wage B) business owners who employ logs of workers whose current wages are below the new, higher minimum wage C) producers of machines that can perform tasks done by low-skilled workers. that is producers of machines that can substitute for low-skilled workers D) consumers of goods and services that are produced with lots of low skilled workers |
C) producers of machines that can perform tasks done by low-skilled workers. that is producers of machines that can substitute for low-skilled workers
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If the price of tomatoes falls, then ceteris paribus the price that consumers pay for tomato soup (complimentary good) will A) rise B) fall C) be unaffected |
B) fall
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If the price of tomato soup falls, then the demand for lentil soup if lentil soup is an economic substitute for tomato soup will A) rise B) fall C) be unaffected |
B) fall
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If the demand for lentil soup falls, the price of lentil soup will A) rise B) fall C) be unaffected |
B) fall
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If the price of lentil soup rises and saltine crackers are an economic complement to lentil soup, then this rise in the price of lentil soup will cause the demand for saltine crackers to
A) rise B) fall C) be unaffected |
B) fall
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If the price of whole wheat crackers falls, then the demand for whole wheat crackers will A) rise B) fall C) be unaffected |
C) be unaffected
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In 2015, Andy's annual income is 10,000; Bruces annual income is 100,000 and Cynthias annual income is 1,000,000. With a proportional or flat tax on all income in 2015. A) Andy, Bruce and Cynthia will each pay the same number of dollars in taxes B) Andy will pay fewer dollars than will Bruce, Bruce will pay fewer than Cynthia C) Andy will pay more dollars than Bruce, Bruce will pay more than Cynthia D) Although Cynthia will pay more dollars in taxes than will either Andy or Bruce, ,the percent of her income that Cynthia will pay in taxes will be less than the percent of their incomes paid in taxes by either Andy or Bruce |
B) Andy will pay fewer dollars than will Bruce, Bruce will pay fewer than Cynthia
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In 2015, Andy's annual income is 10,000; Bruces annual income is 100,000 and Cynthias annual income is 1,000,000. With a proportional or flat tax on all income in 2015. Winder which of the following income tax regimes will Cynthia pay a higher percent of her total income in taxes than will either Andy or Bruce?
A) regressive B) proportional or flat C) Progressive D) one |
C) Progressive
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Which of the following results of a cut in the average rate of income taxation from 80 percent to 40 percent, is consistent with Laffer cuver analysis? A) governments income tax revenue falls B) governments income tax revenue rises C) taxpayers have less incentive to avoid and to evade income taxation D) all of the above |
C) taxpayers have less incentive to avoid and to evade income taxation
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When choosing her place to vacation, Gwen prefers Amsterdam to Boston and Boston to Chicago. If Gwen is a rational person, she A) prefers Amsterdam to Chicago B) prefers Chicago to Amsterdam C) makes no difference |
A) prefers Amsterdam to Chicago
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Which of the following four economic propositions most directly and plausibly at least according to econoists best explains the fact that the U.S government has in place several policies that protects American corn farmers from suffering if the world price of corn falls? A) the principle of comparative advantage B) the law of diminishing marginal utility C) the special interest group effect D) the concept of subjectivism |
C) the special interest group effect
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Which of the following changes will not cause America's current account deficit to increase? A) non Americans buy more vacation to Los Angeles, Chicago, and Disney World. B) Foreigners build more factories in North Carolina and North Dakota C) Foreigners put more trust into the U.S dollar and as a result hold larger amounts of dollars in their portfolios D) Foreigners impressed by the rise in the price of stocks traded on the NY stock exchange, buy greater amounts of U.S corporate stocks |
A) non Americans buy more vacation to Los Angeles, Chicago, and Disney World.
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United Airlines raised the price of its flights from Miami to Seattle. Result of this price increase, the revenue earned by the United from selling tickets for its Miami to Seattle flights rose. We can conclude from this fact that over the relevant price change range, demand for United's Miami to Seattle flights is A) elastic B)inelastic C)unitarily elastic D) impossible to tell |
B) inelastic
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If Upstart Airlines now enters the airline industry and offers flights from Miami to Seattle, the elasticity of demand for United's flights from Miami to Seattle will A) rise B) fall C be unaffected |
A) rise |
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The _____ likely means that some of the positions endorsed by victorious candidate in democratic political election are in fact consciously opposed by a majority of the voters who voted for that candidate. A) special interest group effect B) rent seeking effect C) bundling effect D) rational ignorance effect |
C) bundling effect
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Which of the following statements is false? A) Good, democratic institutions ensure that government never enacts policies that are contrary to the best interests of the general public B) The law upon which the law of demand is build is the law of diminishing marginal utility C) An increased supply of shoes will cause the price of shoes to fall D) An increase quantity supplied of shoes is caused by the rise in the price of shoes. |
A) Good, democratic institutions ensure that government never enacts policies that are contrary to the best interests of the general public
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Yesterday Oliver expressed his believe that "since governor Willynilly was swore into office last January the unemployment rate in our state has steadily fallen, therefore we can thank Gov. Willy for bringing about this great outcome. Oliver her commits the A) fallacy of composition B) ad hominem fallacy C) naturalistic fallacy D) Post hoc- ergo propter hoc fallacy |
D) Post hoc- ergo propter hoc fallacy
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Ceteris paribus, an increase in the supply of aluminum will cause the price of tin which is a substitution for aluminum to A) rise B) fall C) impossible to tell |
B) fall
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What is the optimal tax rate in "Laffer curver" graph? A) t1 B) t2 C) t* D) not enough info |
A) t1 (farthest to the left on graph) |
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If ceteris paribus, non Americans come to find America to be a less attractive place in which to invest, the U.S. current account deficit will A) rise B) fall C) be unaffected |
B) fall
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The father of modern economics is |
Adam Smith |
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If ceteris paribus, non Americans come to find America to be a less attractive place in which to invest, the U.S. current account surplus will
A) rise B) fall C) be unaffected |
B) fall |
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If a rise in the wages of steel factory workers will cause the price of steal to A) rise B) fall C) be unaffected |
A) rise
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If a rise in the wages of steel factory workers will cause the price of refrigerators made with steel to A) rise B) fall C) be unafffected |
A) rise
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If a rise in the wages of steel factory workers will cause the price of refrigerators made not with steel, but with aluminum to
A) rise B) fall C) be unafffected |
A) rise |
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If in 2014, France will have a current account surplus of $30,7762 billion, then in 2014 France will have a capital account A) deficit of 30,7762 billion B) surplus of 30,7762 billion C) surplus of at least 30,7762 billion D) deficit of at least 30,7762 billion |
A) deficit of 30,7762 billion
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For an ordinary American consumer, with of he following goods is likely to have the highest elasticity of demand? A) chewing gum B) Marcedes Benz automobile |
B) Marcedes Benz automobile |
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Ceteris paribus, which of the following situations will not result in a rise in the price of dog food? (Assume that there is no government imposed ceiling or floor on the price of dog food). A) the price of dog food currently is below its equilibrium level B) the demand for dog food rises C) the supply of dog food falls D) dog food is a normal good, and consumers incomes fall E) None of the above |
D) dog food is a normal good, and consumers incomes fall
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According to now widely accepted interpretations of the Equation of Exchange, inflation is the result of A) higher output prices B) higher input prices C) a decrease in the money supply D) an increase in the money supply E) an increase in the money supply |
E) an increase in the money supply |
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Which of the following will cause the equilibrium price of peanuts to fall? A) a rise in the wages paid to workers who harvest peanuts B) a fall in the wages paid to workers who harvest peanuts C) a rise in the demand for peanuts D) a fall in the quantity demand of peanuts |
B) a fall in the wages paid to workers who harvest peanuts |
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Which of the following changes in the supply or in the demand for cloth upholstered furniture will cause the price of leather upholstered furniture to fall? see graph if they are substitutes for one another
A) Right shift in supply B) Left shift in demand C) Left shift in supply D) Right shift in demand |
B) Left shift in demand
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T or F: Goods M and N are economic complements to each other if, as the price of M rises, the demand for N falls |
True |
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If R is a normal good, A) a rise in consumer income will reduce the demand for R B) A fall in consumer income will reduce the demand for R C) a rise in consumer income will reduce the supply for R D) a fall in consumer income will reduce the supply for R |
B) A fall in consumer income will reduce the demand for R
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When the Equation of Exchange is used to explain the relationship between money supply growth and inflation, the two variables that are normally held constant are A) V & Q B) M&V C) M &P D) V&P |
A) V & Q
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According to economic analysis, a potential downside of the legislated minimum wage is that A) Causes higher unemployment among unskilled workers B) Encourages racial discrimination C) causes employers to work their low waged workers harder D) all the above |
D) all the above
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The demand for saltine crackers falls, then the demand for whole wheat crackers (sub good) will A) rise B) fall C) unaffected |
B) fall
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T or F: the law of demand is derived from the law of diminishing marginal returns |
True |
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If the demand for fruit cake rises the supply of fruit cake also rises A) the price of fruit cake will rise B) the price of cake will fall C) the Price of cake will not change D) impossible to tell |
A) the price of fruit cake will rise
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If the equilibrium price of cake rises when the supply of cake remains unchanged, you can conclude that A) quantity demanded of cake has fallen B) Quanity demanded of cake has risen C) Demand for cake has fallen D) demand for cake has risen |
D) demand for cake has risen
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If government imposes price ceiling on cake |
the quantity demanded of cake will rise |
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If price of fruit used to make the cake falls |
the supply of fruit cake will rise |
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If government imposes excise tax on cake, making sellers responsible for this tax than |
the price of fruit cake will rise |
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Which will most likely increase the quantity supplied of peanuts |
a fall in the cost of growing peanuts |
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If Deb prefers wine (a) to beer (b), beer (b) to vodka (c), vodka (c) to wine (a), her preferences are |
intransitive |
