Which of the following is NOT provided in the textbook as something that might lead to the creation of a new market?

A. New laws
B. New buyers
C. New sellers
D. New services


Answer: A

Economics

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Which of the following is likely to reduce the total efficiency units of labor in an economy?

A) A decrease in the price of capital B) A recession that lowers aggregate demand C) An increase in the price level D) An earthquake that kills several people

Economics

Refer to Figure 19-4. The equilibrium exchange rate is at A, $3/pound. Suppose the British government pegs its currency at $4/pound. Speculators expect that the value of the pound will drop and this shifts the demand curve for pounds to D2

After the shift, A) there is a surplus of pounds equal to 400 million. B) there is a shortage of pounds equal to 600 million. C) there is a shortage of pounds equal to 200 million. D) there is a surplus of pounds equal to 600 million. E) there is a shortage of pounds equal to 400 million.

Economics

Which of the following statements is true of the price elasticity of? demand?

A) As the number of substitutes for a product increases, the price elasticity of demand for that good decreases. B) If the budget share of a particular good in a consumer's bundle increases, the price elasticity of demand for that good is likely to decrease. C) The price elasticity of demand for a good is generally higher in the long run than in the short run. D) The demand for a good with a price elasticity of demand of zero is highly responsive to price changes.

Economics

When marginal utility is positive but decreasing, total utility is

A) decreasing. B) negative. C) increasing. D) zero.

Economics