If a good is normal, then the Engel curve:
A. slopes upward.
B. slopes downward.
C. is vertical.
D. is horizontal.
A. slopes upward.
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Import quotas:
Have the same effect on producers as export subsidies Can be considered to be a form of voluntary export restraints Require agreement between importing and exporting nations Set the number of units of a product that can be imported
There is an externality present only when
A. private costs or benefits diverge from social costs or benefits. B. private costs equal social costs. C. private costs equal social benefits. D. private benefits equal social benefits.
If the United States were to pass legislation that would make it easier for people to emigrate to the United States, this would cause
A. the short-run aggregate supply curve to shift to the left. B. the short-run aggregate supply curve to become flatter. C. the short-run aggregate supply curve to become nearly vertical at all levels of output. D. the short-run aggregate supply curve to shift to the right.
The idea of the ________ is that people make lifetime consumption plans.
A. law of demand B. life-cycle theory of consumption C. classical theory of investment D. invisible hand