Which of the following will cause the demand curve for a normal good to shift to the right?
a. a decrease in income
b. an increase in the price of a complementary good
c. a decrease in the price of the good
d. an increase in the price of a substitute good
e. an expectation of a future price decline
D
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The manufacturing sector is dominated by
A) corporations. B) partnerships. C) proprietorships. D) government firms.
Charging higher prices for one category of patients in order to provide free or subsidized care to another group is called
a. price discrimination. b. cost-shifting. c. categorical costing. d. reprehensible and unethical. e. creative accounting.
If Chad's labor-supply curve is upward-sloping, then, for Chad,
a. an increase in the wage creates an income effect that is greater than the substitution effect. b. an increase in the wage creates a substitution effect that is greater than the income effect. c. leisure and consumption are perfect substitutes. d. leisure and consumption are perfect complements.
Assume that the one-year interest rate is on the vertical axis of the IS-LM model and that the yield curve is initially upward sloping. Suppose that financial market participants expect that the central bank will pursue a monetary contraction in the future. Given this information, we would expect which of the following to occur?
A) The yield curve will become steeper. B) The yield curve will become flatter. C) The yield curve will become horizontal. D) The yield curve will become downward sloping.