An increase in the demand for peanut butter, a normal good, can be caused by a(n):
a. decrease in consumer income.
b. increase in the price of jams, jellies, and preserves.
c. decrease in the price of bread.
d. drought in Georgia that destroyed 30 percent of the peanut crop.
e. decrease in the price of bologna.
a
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Perfect competitors produce goods that are
a. highly differentiated b. differentiated by firm c. poor substitutes for each other d. identical e. unique
Poor Asian countries may have per-capita GDP's that may be less than $250 . Why is this somewhat misleading for comparative purposes?
a. Most rich country GDP is nonmarket activity. b. A significant amount of poor country GDP is nonmarket activity. c. Poor countries do not use dollars. d. Poor countries have few resources.
According to supply-side economics, a(n) ________ in the tax rate tends to increase the labor supply and ________ aggregate output.
A. decrease; increase B. increase; decrease C. decrease; decrease D. increase; increase