The price effect refers to how changes in
A) price affect real income.
B) price affect the quantity of a good consumed.
C) income affect prices.
D) preference affect prices.
B
You might also like to view...
Voluntary exchange ________ economic efficiency because neither the buyer nor the seller would agree to a trade unless ________
A) decreases; they both benefit B) increases; they both benefit C) decreases; neither benefit D) increases; only one party benefits
A common criticism of welfare programs is that they
a. create self-reliant individuals. b. encourage strong family values. c. encourage illegitimate births. d. have increasing benefits over time, in real terms.
Jessica's workplace is collecting money for a lottery pool. Each employee can choose to contribute $50, with a 1 in 600,000 chance of winning $1 million. If Jessica chooses not to contribute to the lottery pool, she is probably experiencing:
A. status quo bias. B. loss aversion. C. the endowment effect. D. positive framing.
In the IBM case, the company was accused of violating the law that prohibits
A. firms from successfully achieving monopoly status. B. firms from using their monopoly in one market to increase market share in another. C. charging prices that are unfairly too high. D. firms from attempting to undercut competitors' prices.