An increase in aggregate demand is most likely to be caused by an increase in:
a. Interest rates for home mortgages
b. government regulations on business firms
c. consumer confidence
d. taxes on households
c. consumer confidence
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The marginal propensity to consume is
a. the change in consumption associated with a change in income. b. equal to the marginal propensity to save minus 1. c. equal to 1 minus the marginal tax rate. d. the change in consumption associated with a change in wealth.
The law of comparative advantage implies that a nation, individual, or region should trade for those economic goods for which it
What will be an ideal response?
Suppose the market for "soda X" is in equilibrium. If the FDA announced today that this soda has been proven to cause a fatal disease, what would be most likely to happen to the equilibrium price and equilibrium quantity of soda X?
A. Price increases and quantity increases B. Price decreases and quantity increases C. Price increases and quantity increases D. Price decreases and quantity decreases
Price discrimination is
A) refusing to sell a given product to some group of customers. B) selling a given product at more than one price. C) selling a given product at more than one price, with the price differences reflecting differences in marginal cost in providing the product to different groups of customers. D) selling a given product at more than one price, with the price differences being unrelated to differences in cost.