The crowding-in effect results from
A. a low MPS.
B. induced investment.
C. induced consumption.
D. rising interest rates.
Answer: B
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Wages for workers producing iPods and similar products will rise next year. Walkman Watch asks you to predict the effect of this change in next year's market for iPods. You predict that the major effect will be that the
A) demand curve for an iPod will shift rightward. B) demand curve for an iPod will shift leftward. C) supply curve for an iPod will shift leftward. D) supply curve for an iPod will shift rightward.
In the long run, fixed costs are
A) sunk. B) avoidable. C) larger than in the short run. D) not included in production decisions.
The government often enacts regulation that benefits producers because
a. the government seeks to regulate in the best interest of the public b. consumers have less information than producers and therefore seek government protection c. consumers have a strong interest in matters that affect their standard of living d. producers have a strong interest in matters that affect their specialized source of income e. producers seek to act in the best interest of the public
An increase in the price level, other things remaining the same, may be expected to result in ____ the consumption function
a. a downward shift of b. a movement along c. an upward shift in d. no effect on