Which would best explain a decrease in both the price and the quantity of a product over a period of time?
A. A decrease in people's incomes, and the product is an inferior good
B. A long strike by workers who make the product
C. A decrease in the price of a substitute good
D. A technological improvement in production methods
C. A decrease in the price of a substitute good
You might also like to view...
Linda noticed that ever since her brother bought theft insurance for his car, he keeps forgetting to lock his car. Her brother's behavior is an example of ________
A) adverse selection B) moral hazard C) a positive externality D) a pecuniary externality
Because of diminishing returns, an economy can continue to increase real GDP per hour worked only if
A) the per-worker production function shifts downward. B) there is technological change. C) there are decreases in human capital. D) there continue to be decreases in capital per hour worked.
Venture capital firms attempt to overcome the principal-agent problem by
A) investing only in industries with high profit rates. B) charging high interest rates on loans. C) holding large equity stakes in the firms they invest in. D) avoiding investing in common stock.
Which of the following federal activities was new under the New Deal? The federal government
(a) subsidized building construction. (b) provided federal finances to build houses. (c) established regulatory agencies intended to influence activities in private markets. (d) engaged in all of the above.