Which of the following would not cause market demand for a normal good to decline?
a. An increase in the price of a complement.
b. An increase in the price of a substitute.
c. An announcement by the Surgeon General that the product contributes to premature death.
d. Consumer expectations that the good will go on sale in the near future.
e. A decline in consumer income.
b
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Briefly describe monetarism and the monetary growth rule
What will be an ideal response?
Is it possible for a firm to have a comparative advantage in producing something without having an absolute advantage? Why or why not?
What will be an ideal response?
A fall in the price of farm land and farm prices in the early 1980s caused
a. farmers to borrow more heavily on that land to plant crops b. banks that had lent heavily to farmers to go bankrupt when the farmers were unable to repay their loans c. banks that had lent heavily to farmers to earn extraordinary profit when farmers repaid loans faster than usual d. banks to increase their loans to farmers until the price of farm land increased e. banks and farmers to get together to renegotiate their loans until the price of land and goods increased
Price controls would ordinarily be used to increase rather than decrease prices of depletable resources.
Answer the following statement true (T) or false (F)