Suppose that consumers expect the price of a product to decrease in the future. The result is that:
A. the current demand for the product increases.
B. the current demand for the product decreases.
C. the current supply of the product increases.
D. the current supply of the product decreases.
Answer: B
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The idea of increasing opportunity cost is reflected in the
A) bowed in shape of the production possibilities frontier. B) bowed out shape of the production possibilities frontier. C) linear shape of the production possibilities frontier. D) fact that the PPF shows there are unattainable production points. E) positive slope of the production possibilities frontier.
According to the economic way of thinking, government officials tend to vote on legislation that
A) concentrates benefits on a well-organized group. B) disperses costs throughout a great number of politically unorganized people. C) generates short-term benefits and postpones the costs. D) does all of the above. E) does none of the above.
Harry Truman is credited with the statement, "Give me a one-armed economist," because economists are likely to say, "On the one hand, . . . on the other hand." Why do economists "waffle" more than physicists or chemists?
Which of the following would be considered a good starting point for measuring a nation's quality of life?
(A) Real GDP per capita (B) Business cycle (C) Aggregate supply (D) Intermediate goods