When the price of a good decreases:
A. the good becomes less expensive relative to other goods and the consumer's purchasing power increases.
B. the good becomes less expensive relative to other goods and the consumer's purchasing power decreases.
C. the good becomes more expensive relative to other goods and the consumer's purchasing power increases.
D. the good becomes more expensive relative to other goods and the consumer's purchasing power decreases.
A. the good becomes less expensive relative to other goods and the consumer's purchasing power increases.
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According to the theory of liquidity preference, if the interest rate rises
a. people want to hold more money. This response is shown by moving to the right along the money demand curve. b. people want to hold more money. This response is shown by shifting the money demand curve right. c. people want to hold less money. This response is shown by moving to the left along the money demand curve. d. people want to hold less money. This response is shown by shifting the money demand curve left.
When the home construction industry does poorly due to a recession, this is an example of:
A. risk premium. B. unique risk. C. idiosyncratic risk. D. systematic risk.
The short-run supply curve for a perfectly competitive firm is the portion of its
A) ATC curve above the MC curve. B) MC curve above the ATC curve. C) ATC curve below the MC curve. D) MC curve above its AVC curve.
The experiences of Singapore, Whole Foods Markets, and the State of Indiana all point to one major factor that could reduce, if not eliminate, overconsumption of health care. And that is:
A. Reducing the coverage of insured illnesses B. High out-of-pocket costs to consumers C. Raising the health-insurance premiums D. Privatizing health insurance