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For each of the following scenarios, state whether the income effect, the substitution effect, or both are significant and explain why.   1.  Cranberry juice represents a small share of Edith’s spending.  The price of cranberries increased dramatically due to poor weather.  Edith elects to buy orange juice instead of cranberry juice. 2. Students at a nearby college are forced to pay more for a semester-long dining card/meal ticket.  This represents a significant increase to living costs.  As a result, many students have less money to spend at nearby restaurants during the weekends and eat in the cafeteria instead.  Assume that cafeteria meals are an inferior good. 3.  Terri goes to the farmers’ market to buy 1 carton of strawberries.  The price of strawberries falls from $3 to $1 per carton.  Terri now buys 3 cartons instead of 1.

Quarter 1 United States GDP: $4.8 trillion, Unemployment: 3.6%, Inflation: 2.5%. Quarter 2 United States GDP: $5.1 trillion, Unemployment: 3.4%, Inflation: 2.8% Quarter 3 United States GDP: $5.5 trillion, Unemployment: 3.2%, Inflation: 4%

Quarter 1 United States GDP: $5.1 trillion, Unemployment: 3.3%, Inflation: 1.9%. Quarter 2 United States GDP: $5.2 trillion, Unemployment: 3.3%, Inflation: 2% Quarter 3 United States GDP: $5.1 trillion, Unemployment: 3.2%, Inflation: 1.9% Economy has had five years of steady growth   Fiscal Policy should be

When an economy produces a combination of goods that lies on the production possibilities frontier,              

If you exceed your budget, you may have to:

A beta of 1 on a security is said to carry the same risk as:

Beta measures: 

Capital asset pricing model is used to predict: 

A company sells widgets for $5.  The cost to produce each widget is $2. Rent for the building is $1000 per month.  The company sells 100 widgets, what is the gross income for the company?

Henry and John are fisherman who catch bass and catfish. This chart shows how many of each type of fish they can catch in one day.                                                 Bass                                   Catfish Henry 4 Bass 6 Catfish John 24 Bass 12 Catfish What is the opportunity cost for Henry of catching 1 bass?