After Joyce and Larry purchased their first house, they made additional home improvements in response to increases in income. After a while, their income rose so much that they could afford a larger home
Once they realized they would be moving, they reduced the amount of home improvements. Their Engel curve for home improvements on their current home is A) negatively sloped.
B) flat.
C) positively sloped.
D) backward bending.
D
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According to the graph shown, if this economy were open to free trade, and decided to impose a tariff, the domestic quantity demanded would:
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. decrease from 1500 to 1150.
B. increase from 1150 to 1500.
C. increase from 815 to 1150.
D. decrease from 1150 to 815.
Which of the following is counted in GDP?
a. the cost of the reconstruction and cleanup following September 11, 2001. b. the value of leisure time c. the value of a househusband's work at home d. the value of your do-it-yourself work
Under which conditions might diseconomies of scale result?
A. hampered coordination brought about by bureaucracy B. decreasing costs of inputs C. increasing output prices D. usage of a large amount of indivisible inputs by the firm
If the long-run supply curve slopes downward, we know that this is
A) a decreasing-cost industry. B) a constant-cost industry. C) an increasing-cost industry. D) a situation in which no input prices change as firms enter and exit the industry.