Refer to the table and graph. Suppose that the price of X falls from $2 to $1, while the price of Y remains at $4. Which of the following represents the demand curve for X if the consumer has money income of $10 to spend on X and Y?
A. D 1
B. D 2
C. D 3
D. D 4
B. D 2
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When a U.S. company shifts its call-center operations overseas to reduce costs, it is applying the economic concept of
A) using assumptions to simplify. B) thinking at the margin. C) comparative advantage. D) diminishing returns.
According to the text, success requires:
A) there is no secret formula that guarantees success. B) a visionary leader. C) a focus on quality. D) a customer-orientation. E) an emphasis on efficiency.
Explain how advertising can act as a signal.
What will be an ideal response?
Policymakers who wish to discourage businesses that pollute by taxing them:
A. should place a tax on consumers instead of the producers in order to increase the burden on sellers. B. should place a tax on producers instead of the consumers in order to increase the burden on sellers. C. forget that some of the tax burden will be shared by consumers. D. forget that businesses will pass the entire tax onto consumers of their products.