Economists
a. believe that tastes are the major influence on consumers' income expectations
b. have observed that tastes vary with changes in the number of consumers
c. recognize that tastes have an important impact on demand
d. can say a great deal about the origin of tastes
e. suspect that tastes can cause a movement along the demand curve
C
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When the market for a commodity is in equilibrium:
A) there will still be some unsold stock of the commodity. B) all sellers of the commodity will want to change their behavior. C) no economic agent will want to change his or her behavior. D) all buyers of the commodity will want to change their behavior.
Steve is about to start up a business in a monopolistically competitive market. Which of the following can he expect?
a. He can expect market entry to be difficult as there exist entry barriers. b. He can expect to enjoy a huge amount of market power. c. He can expect to face a highly inelastic demand curve. d. He can expect to find close substitutes of the product he is planning to produce. e. He can expect to face an infinitely elastic demand curve.
Bank lending and deposits tend to change as interest rates change. Can the Fed counteract this tendency?
a. Yes, through its ability to affect the money supply. b. Yes, through its ability to change tax levels. c. No, the Fed is forbidden by the Constitution from intervening in the economy. d. No, the Fed almost always follows a passive monetary policy.
Refer to the accompanying table. The marginal utility of consuming apples is:Number of ApplesTotalUtility120235345450545
A. constantly increasing. B. first increasing, but decreasing after the fourth apple. C. constant. D. decreasing after the first apple.