According to the law of demand, if:
a. product price increases, quantity demanded will decrease.
b. consumer income increases, quantity demanded will increase.
c. product price increases, quantity demanded will increase.
d. consumer income increases, quantity demanded will decrease.
e. supply increases, demand will increase.
a
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Assume that the tuna fishing industry is perfectly competitive. Which of the following best characterizes the industry if, as demand for tuna increases, fishing boats have to go farther into the ocean to harvest tuna?
A) a fixed-cost industry B) a decreasing-cost industry C) an increasing-cost industry D) a constant-cost industry
National income accounting reveals that the value of total production in an economy
A) is always greater than the value of total income in the economy. B) is always less than the value of total income in the economy. C) is always equal to the value of total income in the economy. D) may be greater than, less than , or equal to the value of total income in the economy.
Trade barriers should be removed to promote the welfare of the country. This is a(n)
A) positive statement. B) negative statement. C) inverse statement. D) normative statement.
If a consumer reallocates his or her spending away from Good A and towards Good B, then the consumer's total utility will increase if:
A. MUA/PA < 0 and MUB/PB < 0. B. MUA/PA < MUB/PB. C. MUA/PA > MUB/PB. D. MUA/PA > 0 and MUB/PB > 0.