When you purchase the lower-priced store brand bread instead of the more expensive name brand, you are experiencing
A) the substitution effect.
B) the income effect.
C) a fall in total utility.
D) diminishing marginal product.
Answer: A
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In contrast with perfect competition, excess capacity characterizes monopolistic competition. Excess capacity is due to which of the following?
A) Monopolistically competitive firms face downward-sloping demand curves. In the long run, firms produce where their demand curves are tangent to their long-run average total cost curves. B) Monopolistically competitive firms produce at the minimum point on their average total cost curves. C) Monopolistically competitive markets have low barriers to entry. D) Monopolistically competitive firms produce where marginal revenue is equal to marginal cost.
The business sector in the United States has the most influence on
a. primary education. b. on-the-job training. c. teacher training. d. higher education.
Movements along a money demand curve reflect the effects of changes in the _____
Fill in the blank(s) with the appropriate word(s).
All of the following are cited as factors in explaining U.S. competitiveness EXCEPT
A) large investments in scientific research. B) economic restructuring. C) widespread entrepreneurship. D) reducing the federal deficit.