A decrease in net wealth will _____
a. shift the consumption function downward
b. make the consumption function steeper
c. cause an upward movement along the consumption function
d. cause a downward movement along the consumption function
e. make the consumption function flatter
a
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In the figure above, at which point (a, b, or c) along the linear demand curve illustrated would demand be
a) most elastic? b) most inelastic?
A non-rival good is a good which:
a. is produced by a monopoly. b. is produced by a cartel. c. can provide benefits to additional users at a zero marginal cost. d. is sold in a single market.
Economics is a social science in the sense that it
a. rigorously examines human behavior. b. is not as scientific as physics. c. relies on historical data instead of mathematical data. d. relies on statistics instead of mathematics. e. All of the above are correct.
If two goods are close substitutes:
a. Consumers will always buy the one that has the lower price b. An increase in the price of one causes the demand for the other to decrease c. A decrease in the price of one causes an increase in the demand for the other d. A fall in the price of one will decrease the demand for the other