The final consumer demand for chicken (normal good) in China will shift to the left if
A. consumer income decreases.
B. fewer consumers are present in the market.
C. the price of chicken decreases.
D. Either A or B occurs.
Ans: D. Either A or B occurs.
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An economy produces only food and shelter. There are two individuals in the economy: Bill and Mary. Mary's opportunity cost of producing 1 unit of shelter is 2 units of food. Bill's opportunity cost of producing 1 unit of shelter is 4 units of food
A) Bill has a comparative advantage over Mary in the production of shelter. B) Mary has a comparative advantage over Bill in the production of food. C) Mary has a comparative advantage over Bill in the production of shelter. D) Bill has an absolute advantage over Mary in the production of shelter.
The most profitable output level can be found by looking at which two curves?
a. P and MR. b. MR and MC. c. MC and TC. d. P and AVC. e. AVC and ATC.
If the marginal propensity to consume, MPC, is less than 1 and a household's disposable income increases by $2,000, the household's consumption will _____
a. increase by less than $2,000 b. increase by $2,000 c. decrease if the total income of the household is above $100,000 d. remain the same unless the change in income significantly affects the household's wealth e. increase by more than $2,000
The largest component of household consumption spending is expenditures on:
a. services. b. durable goods. c. nondurable goods. d. food. e. transportation.