Say's Law is the idea that
a. in the long run, the economy reaches full employment automatically
b. the aggregate production function, along with the labor market, determines the economy's level of output
c. total output will always exceed total spending
d. whenever a good or service is produced, an equal amount of income is created
e. markets always clear
D
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The chair of the Board of Governors of the Fed is appointed by the president
a. True b. False Indicate whether the statement is true or false
____________: Most probable selling price, assuming "normal" sale conditions. Value for the "typical" market participant may not be fundamental value.
Fill in the blank(s) with the appropriate word(s).
Refer to Table 10-5, which lists the values of Harry Taber's marginal utility and marginal utility per dollar for Italian submarine (sub) sandwiches and tacos. Assume that the price of a sub sandwich is $4 and the price of a taco is $2. When Harry's income is $14, he buys two Italian sub sandwiches and three tacos. The last column lists the values of the marginal utility per dollar for tacos when the price of a taco decreases to $1. Complete this statement: As a result of the change in price
A) Harry's purchasing power has increased. He will reduce his consumption of tacos so he can buy one more sub. This is an example of the substitution effect of a price change.
B) Harry's purchasing power has increased. Harry buys fewer tacos. This is an example of the substitution effect of a price change
C) Harry's purchasing power has increased. If tacos are a normal good for Harry he will buy fewer tacos. This is an example of the income effect of a price change.
D) Harry's purchasing power has increased. If tacos are a normal good for Harry he will buy more tacos. This is an example of the income effect of a price change.
A firm that faces a downward sloping demand curve is
A. a price taker. B. a price creator. C. a price provider. D. a price searcher.