A downward-sloping demand curve shows:
a. the direct relationship between price and quantity supplied; as price increases, the quantity supplied increases.
b. the inverse relationship between price and quantity supplied; as price increases, the quantity supplied decreases.
c. the direct relationship between price and quantity demanded; as price increases, the quantity demanded increases.
d. the inverse relationship between price and quantity demanded; as price increases, the quantity demanded decreases.
d
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The endowment effect is reflected by indifference curves that are:
A. concave to the origin. B. convex to the origin. C. straight lines. D. kinked.
The theory of consumer choice illustrates the
a. importance of property rights in creating efficient markets. b. ability of a single economic actor to have a substantial influence on market prices. c. the trade-offs that people face in their role as purchasers. d. All of the above are correct.
A market shortage is
A. The result of a price floor. B. A situation in which producers cannot sell all the goods and services that they are willing and otherwise able to sell. C. The amount by which the quantity demanded exceeds the quantity supplied at a given price. D. The amount by which the cost of production exceeds the price of a good.
Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point A. The opportunity cost of moving from Point A to Point B is the
A. 30 LCD televisions that must be forgone to produce 60 additional OLED televisions. B. 90 LCD televisions that must be forgone to produce 20 additional OLED televisions. C. 30 LCD televisions that must be forgone to produce 20 additional OLED televisions. D. 120 LCD televisions that must be forgone to produce 40 additional OLED televisions.