The law of demand refers to the
a. decrease in price that can be expected as more units of a product are demanded.
b. increase in price that results from an increase in demand for a good of limited supply.
c. inverse relationship between the price of a good and the quantity demanded.
d. increase in the quantity of a good available when its price increases.
C
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Is it more efficient for a group of musicians to perform a show "unplugged" (with acoustic instruments) or with state-of-the-art electric instruments?
A) Unplugged is more efficient because the instruments are considerably less expensive to operate. B) It depends on what the musicians are trying to accomplish. C) The use of electric instruments is more efficient because acoustic instruments have become more expensive in recent years. D) It depends exclusively on the relative ratios of energy output to energy input in each instrument class.
Units of CapitalNumber of WorkersOutput/Day50051405290531505420055235
Refer to Table 2.3. Increasing the number of workers from 2 to 3 will increase output per day by:
A. 60 units. B. 90 units. C. 150 units. D. 240 units.
People behave rationally when they
A) follow the advice of government leaders. B) never have regrets about their decisions. C) make decisions they think will make themselves better off. D) make decisions with a focus only on financial outcomes.
Related to the Economics in Practice on page 316: From a consumer welfare standpoint, as the variety of available choices of a particular type of product increases, consumer welfare
A. decreases at a proportional rate. B. increases at a proportional rate. C. increases to a point, but eventually may lose value with too much variety. D. tends to remain very constant.