To derive the law of demand, we assume that
A. marginal utility is constant.
B. prices are constant.
C. tastes are constant.
D. real prices are constant.
Answer: C
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A country is said to have a comparative advantage in producing a good over another country if that first country
A. is a major consumer of the good. B. can produce more units of the good. C. has a lower opportunity cost of producing the good. D. is a more efficient producer of the good.
Coordination of economic policies among nations is a prisoner's ________ because all countries will be better off if they ________
A) dilemma; cooperate B) conundrum; cooperate C) sentence; compete D) screed; compete E) quandary; collude
One reason that monopolies often earn zero economic profits is that
a. many monopolies are regulated by the government b. competitors cut prices c. barriers to entry are low d. collusion prevents profits e. costly concessions to labor suppliers reduce economic profit
The Constitution of the United States says nothing about state economic activity.
A. True B. False C. Uncertain