Which of the following examples best describes the Law of Demand?
A) When John's income doubles, his telephone bill also doubles.
B) When the price of bread doubles, John's consumption of bread halves.
C) When the price of watches increases, a local manufacturer starts offering more watches for sale.
D) When a new anti-tobacco commercial is released, the consumption of tobacco products decreases sharply.
B
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What is the most accurate statement about the fraction of the US population that lived in urban areas between 1800 and 1910?
a. The fraction of the US population that lived in urban areas grew steadily throughout the period. b. The fraction of the US population that lived in urban areas decreased steadily throughout the period. c. In 1910, about 85% of the US population lived in cities over 100,000 people. d. In 1800, more than half of the US population lived in towns over 2,500 people.
Which of the following does not reflect a positive rate of time preference?
a. People are willing to pay high prices to see new movies at first-run theaters. b. A bank pays interest on savings accounts. c. Ed puts money in his mattress for a rainy day. d. Dry cleaners that provide faster service can charge more. e. A college freshman parties all semester, then stays awake studying for 50 straight hours during final exam week.
Which of the following would occur as a result if Europe experienced a lower inflation rate than the U.S.? a. European products would become more expensive to U.S. consumers
b. It would decrease the quantity of European goods demanded by Americans. c. It would decrease the demand for Euros. d. None of the above would occur.
The relationship between long-run and short-run average total costs is known as the:
A. economic relationship. B. envelope relationship. C. efficiency relationship. D. technical relationship.