Suppose the price of good X falls and the consumption of good X increases. From this we can infer that X is a(n) (i) normal good. (ii) inferior good. (iii) Giffen good
a. (i) only
b. (i) or (ii) only
c. (iii) only
d. (ii) or (iii) only
b
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Refer to Figure 9.2. A movement from point c to point a could be caused by a(n)
A) decrease in government spending. B) increase in the price of oil. C) decrease in taxes. D) decrease in short-run aggregate supply.
The exchange rate changed from € 2.5/ $ to € 2.0/ $. Therefore:
a. The euro appreciated by 20% and the dollar depreciated by 20%. b. The euro depreciated by 20% and the dollar appreciated by 20%. c. The euro appreciated by 25% and the dollar depreciated by 25%. d. The euro depreciated by 25% and the dollar appreciated by 25%. e. The euro appreciated by 25% and the dollar depreciated by 20%.
At his current level of consumption, Evan gets twice as much marginal utility from an additional bottle of water as that from an additional bottle of soda. If the price of soda is $1.00 per bottle, then Evan is maximizing utility if the price of a bottle of water is:
A. $1.50 B. $2.00 C. $0.50 D. $1.00
Which would shift the aggregate demand curve? A change in:
A. net export spending. B. the legal-institutional environment. C. input prices. D. the prices of imported resources.