A decrease in the price of a good causes
A. the nominal wealth of a person to increase.
B. the marginal utility of the good to decrease.
C. the utility of the good to decrease.
D. purchasing power of a person's income to increase.
Answer: D
You might also like to view...
If a nation's Lorenz curve lies on the 45 degree line of income equality, then
A) more of the nation's income is received by the lowest 20 percent of families than by the highest 20 percent. B) income is unequally distributed. C) more of the nation's income is received by the highest 20 percent of families than by the lowest percent. D) the income received by each 20 percent of families is 20 percent of the total income.
The transactions demand for holding money is when people hold money:
a. instead of near money. b. to transact purchases they expect to make. c. as insurance against unexpected expenses. d. to speculate in the stock market. e. to take advantage of changes in interest rates.
Which of the following best defines consumer surplus?
a. the amount that individuals actually paid, minus the amount that they would have been willing to pay b. the amount that a seller is paid for a good minus the seller’s actual cost c. the amount that individuals would have been willing to pay, minus the amount that they actually paid d. when it is impossible to improve the situation of one party without imposing a cost on another
Which of the following is NOT an example of a good with network economies?
A. Internet service B. A computer printer C. A cell phone D. Facebook