Which of the following will not cause a shift in the demand for resource X?
A. A decline in the price of resource X.
B. An increase in the price of the product resource X is producing.
C. A decrease in the price of substitute resource Y.
D. An increase in the productivity of resource X.
Answer: A
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The Taiwanese government allows tax credits for domestic producers who compete with manufacturers in First World nations. This suggests that Taiwan engages in _____
a. trade protectionism b. export substitution c. foreign exchange market intervention d. import substitution e. voluntary export restrictions
____________ laws set a ceiling on interest rates.
Fill in the blank(s) with the appropriate word(s).
The average price of gasoline in your neighborhood is $2.15 per gallon
Your neighbor, Diana tells you that you can "save a lot" by frequenting a gas station 20 miles outside your neighborhood where the price of gasoline is $2.06 per gallon However, she cautions you that there are usually long lines at that station. Is her suggestion beneficial to you? A) No, my friend is misled; clearly, the lower-priced gasoline must be of inferior quality and could damage vehicles. B) No, if one factors in the non-monetary opportunity costs (driving time and waiting in line), it could prove more costly to go to the lower-priced gasoline station. C) Yes, the lower price of gasoline at the rival station increases my purchasing power and enables me to consume more of other goods. D) Yes, since gasoline is a necessity for car owners, the total cost savings would be relatively substantial.
Suppose the prices of petroleum products, including gasoline and fuel oil, fell sharply. Which of the following would most likely occur as the result of the lower prices of petroleum products?
a. A reduction in the consumption of gasoline. b. An increase in demand for solar heating systems. c. An increase in demand for smaller, more efficient automobiles. d. A reduction in the demand for home insulation products.