Which of the following statements is FALSE about the demand curve?
A) An increase in demand shifts the demand curve to the left, closer to the price axis.
B) When only the price of a good changes, there is movement along the demand curve but no change in demand.
C) A change in demand is graphically shown by shifting the entire demand curve.
D) When demand decreases, there is a drop in the quantity demanded at each price.
A
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As government debt increases,
a. Congress will reduce spending by an equal proportion. b. the government must spend more revenue on interest payments. c. a trade-off with government deficits is inevitable. d. tax rates must rise to cover the deficit.
How do economists view positive statements?
a. affirmative, justifying existing economic policy b. optimistic, putting the best possible interpretation on things c. descriptive, making a claim about how the world is d. prescriptive, making a claim about how the world ought to be
If the number of employed people goes down at the same time that the unemployment rate goes down, then we may conclude that some people must have
A. left the labor force. B. entered the labor force. C. been forced off unemployment benefits. D. either retired or died.
In national income accounting, government purchases include:
A. purchases by federal, state, and local governments. B. purchases by the federal government only. C. government transfer payments. D. purchases of goods for consumption but not public capital goods.