Assume there is a simultaneous decrease in the cost of batteries used in hybrid cars and a shift in consumer preferences toward more fuel-efficient vehicles
Based on this, we can conclude, with certainty, that in the market for hybrid cars, equilibrium: A) price will decrease.
B) price will increase.
C) quantity will decrease.
D) quantity will increase.
D
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As real disposable income increases, we expect the average propensity to consume (APC)
A) to always be below MPC. B) to increase. C) to remain unchanged. D) to decrease.
The term "market" refers to trading arrangements by which buyers and sellers come together
Indicate whether the statement is true or false
Which of the following statements is true?
a. Fiscal policy is the manipulation of the nation's money supply to influence the nation's output, employment and price level. b. Discretionary fiscal policy is the deliberate use of changes in government spending and taxes to stabilize the economy. c. The tax multiplier is the change in aggregate demand resulting from an initial change in government spending. d. A budget deficit exists when government tax revenues exceed government spending.
The type of good that is most likely to be subject to market failure is:
A. a public good. B. an uncommon resource. C. a factor of production D. a private good.