Violations of the law of demand are assumed to occur
a. regularly.
b. only when goods are Giffen goods.
c. only when the substitution effect dominates the income effect.
d. All of the above are correct.
b
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The entrepreneur
A. runs his or her own business and risks his or her own money. B. does not necessarily run her or his own business nor risks her or his own money. C. runs his or her own business, but does not necessarily risk his or her own money. D. does not necessarily run her or his own business, but does risk her or his own money
Which of the following happened during the recession of 2007-2009?
A) Housing prices rose. B) Unemployment increased. C) Consumption increased. D) Food prices rose.
If a producer wants a monopoly with a legal barrier to entry, how can this be done?
i. The producer can spend funds lobbying to attain passage of the legal barrier to entry. ii. The producer can purchase an existing monopoly. iii. The producer can make rent seeking expenditures. A) i and ii B) i and iii C) ii and iii D) i, ii, and iii E) None of the above are ways to acquire a monopoly with a legal barrier to entry.
Which of the following statements is true?
A) Base year prices are necessarily higher than current year prices. B) The CPI in the base year is always 100. C) If the CPI is 112 in year 1 and 123 in year 2, prices have risen by approximately 9.8 percent between the two years. D) b and c E) a, b, and c