If the price of a normal good rises, the opportunity cost of that good rises and households buy less of the good.
Answer the following statement true (T) or false (F)
True
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According to two economists, George Ackerlof and William Dickens, how can cognitive dissonance affect workers' perceptions of their jobs?
A) Cognitive dissonance causes workers to perceive they are victims of discrimination when, in fact, they are not. B) Cognitive dissonance might cause workers to underestimate the true risks of their jobs. C) Cognitive dissonance makes workers believe that measures to improve their health and safety in the workplace are ineffective. D) Cognitive dissonance causes a worker to believe his marginal revenue product is greater than it really is.
If the marginal propensity to consume is 0.6, what is the value of the expenditure multiplier?
a. 1.0 b. 1.6 c. 2.0 d. 2.5 e. 6.0
In the above figure, new expectations of booming business conditions and a higher expected profit will
A) shift the demand for loanable funds curve leftward. B) shift the demand for loanable funds curve rightward. C) have no effect on the demand for loanable funds curve. D) make the demand for loanable funds curve become horizontal.
Sonya's budget for magazines and chocolate bars is $50. Her marginal utility from these goods is shown in the table above. The price of a magazine is $5 and the price of a chocolate bar is $2.50
Sonya currently buys 4 magazines and 12 chocolate bars. To maximize her utility, she should A) buy more chocolate bars and fewer magazines. B) buy more magazines and fewer chocolate bars. C) buy more of both goods. D) stay with the current combination of goods.