If good A and good B are substitutes and the price of good A decreases, the demand for good B will
A. not change.
B. decrease.
C. increase.
D. become nonexistent.
B. decrease.
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Contracts reduce the level of specialization in an economy
a. True b. False
A rain barrel is a container that captures and stores rainwater for landscape and garden use during dry periods. Rain barrels provide an external benefit to the community through water conservation. What can the government do to equate the equilibrium quantity of rain barrels and the socially optimal quantity of rain barrels?
a. impose a tax on rain barrels that is equal to the per-unit externality b. offer a subsidy on rain barrels that is equal to the per-unit externality c. encourage homeowners to bargain with rain barrel producers d. nothing
When a government raises its budget deficit, then that country's
a. national saving rises, so its supply of loanable funds shifts right. b. national saving falls, so its supply of loanable funds shifts left. c. national saving rises, so its demand for loanable funds shifts right. d. national saving falls, so its demand for loanable funds shifts left.
According to the ideas behind utilitarian justice, a dollar in the hands of a rich person is worth less than a dollar in the hands of a poor person.
Answer the following statement true (T) or false (F)