Output price changes cause substitution effects and scale effects. ?
Answer the following statement true (T) or false (F)
False
Rationale: Output price changes cause no substitution effects, only scale effects.
You might also like to view...
A legal entity that may conduct business in its own name just as an individual does is a(n)
A) corporation. B) entrepreneur. C) proprietorship. D) partnership.
An economic slowdown in Europe is likely to lead to a(n):
a. decrease in U.S. exports and U.S. aggregate demand. b. increase in U.S. exports and U.S. aggregate demand. c. decrease in U.S. imports and U.S. aggregate demand. d. increase in U.S. imports and U.S. aggregate demand.
If the Federal Reserve lowered the reserve requirements imposed on the banking industry, which of the following will most likely happen in the short run?
a. an increase in the demand for loanable funds, which will exert upward pressure on the interest rate b. an increase in the supply of loanable funds, which will exert downward pressure on the interest rate c. an increase in the unemployment rate d. a decrease in the rate of inflation
Which of the following adopted reforms that have substantially improved their economic freedom rating since 1980?
a. Ireland b. China c. New Zealand d. All of the above.