The income effect of a price change refers to the impact of a change in
A) income on the price of a good.
B) demand when income changes.
C) the quantity demanded when income changes.
D) the price of a good on a consumer's purchasing power.
Answer: D
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Why do corporate boards of directors sometimes link top managers' compensation to the corporations' stock prices? How might tying compensation too closely to stock prices create an incentive for corporate fraud
What will be an ideal response?
Which of the following goods is the best example of a public good?
a. garbage-collection services that are provided by a municipal government b. music that is broadcast over the airwaves by a privately-owned FM radio station c. electricity that is provided to farmhouses by a rural electric cooperative d. cable TV services that are provided by a privately-owned firm that is regulated by the government of the city in which it operates
What type of economic system is the United States economy based on?
a. cause and effect b. centralized c. market d. production
If firms are in Cournot equilibrium:
A. firms could increase profits by jointly increasing output. B. firms could increase profits by jointly reducing output. C. each firm could increase profits by unilaterally decreasing output. D. each firm could increase profits by unilaterally increasing output.