Steak is a normal good. A decrease in the price of steak
a. causes the budget line to rotate inward
b. makes the supply of steak more elastic
c. decreases consumers' purchasing power
d. makes consumers poorer
e. increases consumers' purchasing power
E
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An automobile manufacturing plant opens in Alabama, and its owner, all of the workers, and all raw materials are from Japan. How would the purchase of an automobile from this plant change U.S. GDP and GNP?
a. It would increase GNP and GDP. b. It would increase GNP and leave GDP unchanged. c. It would increase GDP and leave GNP unchanged. d. It would leave both GDP and GNP unchanged.
C + I p + G + NX equals:
A. planned aggregate expenditure. B. the output gap. C. potential GDP. D. the income-expenditure multiplier.
Discuss probable incidence of a local tax on business property
What will be an ideal response?
A consumer has two basic choices: rent a DVD movie for $4.00 and spend 2 hours watching it, or spend $13 for a miniature golf game that takes 1 hour. If the marginal utilities of the movie and the miniature golf game are equal, and the consumer values time at $12 an hour, the rational consumer will most likely:
A. Rent the movie instead of playing miniature golf B. Play miniature golf instead of renting the movie C. Be indifferent between the movie and the miniature golf game D. Not have enough basis for making a utility-maximizing decision