Which of the following is consistent with the law of demand?
A) People substitute higher-priced goods for higher-quality goods.
B) People substitute some higher-priced goods for other higher-priced goods.
C) People substitute lower-priced goods for higher-priced goods.
D) People substitute some lower-priced goods for other lower-priced goods.
C
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Pain, suffering and disfigurement are forms of
a. compensatory damages b. punitive damages c. economic damages d. all of the above.
Edward Chamberlin argued that governments should
a. ban the use of brand names. b. not enforce the trademarks that companies use to identify their products. c. vigorously enforce the trademarks that companies use to identify their products. d. tax companies whose products have brand names in proportion to how much consumers recognize their products.
Which of the following categories accounted for the largest percentage of total federal government expenditures in recent years?
a. National defense b. Education and health c. Income security d. Interest on the national debt
The substitution effect suggests that, when consumers judge product quality by price, they will substitute high-priced products for low-priced products.
a. true b. false