According to the household liquidity effect, higher stock prices lead to increased consumption expenditures because consumers
A) feel more secure about their financial position.
B) want to sell stocks and spend the proceeds before stock prices fall.
C) believe that their wages will increase due to increased profitability of firms.
D) can now afford more expensive imports.
A
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A graph shows that the number of U.S. tourists visiting a Caribbean island increases as the temperature in the northeastern United States falls. The graph shows
A) a direct relationshi
In perfect price discrimination, which of the following are reduced to zero?
a. Consumer surplus and producer surplus b. Producer surplus and deadweight loss c. Consumer surplus and deadweight loss d. Producer surplus and total welfare
The figure below shows the market for computers in a small importing country. Dd and Sd are the domestic demand and supply curves of computers, respectively.
Calculate the tariff revenue of the country's government.
A. $76 million B. $28 million C. $40 million D. $400,000
Which of the following will cause an outward (rightward) shift of the supply curve for TVs?
A. A decrease in the price of TVs B. An improvement in TV technology C. An increase in the price of TVs D. A decrease in the number of firms producing TVs