A decrease in transfer payments or an increase in taxes would ____ disposable income of households and thus ____ in consumption purchases
a. increase; increase.
b. increase; decrease.
c. decrease; increase.
d. decrease; decrease.
d
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In what way is a stronger yen/weaker dollar a burden for Japanese exporters?
A) They received dollars when they sell goods but most of their costs of production are in yen. B) They receive yen when they sell goods but most of their costs of production are in dollars. C) The price of their exports will decline, resulting in lower profits. D) The stronger yen is likely to increase Japanese inflation, resulting in lower profits.
Which of the following conditions is TRUE for a monopolist?
A) MR < P B) MR = P C) MR = AFC D) MR < AVC
An increase in the price of butter, a substitute good, would be most likely to cause
a. a rightward shift of the demand curve for margarine b. a leftward shift of the demand curve for margarine c. the quantity of margarine demanded to increase d. the quantity of margarine demanded to decrease e. a decrease in the price of margarine
An inverse relationship exists when:
a. there is no association between two variables. b. one variable increases and there is no change in the other variable. c. one variable increases and the other variable increases. d. one variable increases and the other variable decreases.