One reason that the quantity demanded of a good increases when its price falls is that the:
A. price decline shifts the supply curve to the left.
B. lower price increases the real incomes of buyers, enabling them to buy more.
C. lower price shifts the demand curve to the left.
D. lower price shifts the demand curve to the right.
Answer: B
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Which of the following would understate the consumer price index?
a. Substitution bias. b. Deteriorating quality of products. c. Improving quality of products. d. Law of demand bias.
Refer to the graph below. The movement from __________ to __________ is consistent with a successful advertising campaign that claims wool keeps you warm.
a. Point A; Point B
b. Point A; Point F
c. Point A; Point D
d. Point A; Point H
Unions typically ____ deregulation because it generally makes pricing ____ competitive
a. oppose; more b. oppose; less c. support; more d. support; less
For most countries, international goals are generally:
A. much more important than domestic goals. B. less important than domestic goals. C. slightly more important than domestic goals. D. equally important as domestic goals.