If an economist says "the higher the price of oranges, the fewer oranges individuals will buy, ceteris paribus," this means that
A) individuals don't like high-priced oranges.
B) as the price of oranges rises, individuals' preferences change and they no longer like oranges as much as they once did.
C) as the price of oranges rises, individuals' preferences do not change, nor does anything else, but individuals buy fewer oranges in response to the higher price of oranges.
D) the higher the price of oranges, the fewer oranges individuals will buy, assuming that people have economic motives.
C
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Refer to Figure 26-7. Suppose the Fed lowers its target for the federal funds rate. Using the static AD-AS model in the figure above, this situation would be depicted as a movement from
A) C to D. B) A to B. C) C to B. D) E to A. E) B to A.
Fixed fee contracts are desirable when there is little uncertainty regarding the output
a. True b. False
Economic policy of the government is often based on
A) microeconomic models. B) educated guessing. C) intuitive reasoning. D) hints.
Many low-income countries are unable to provide a fertile climate for domestic economic growth and to attract foreign investment because
a. they lack sufficient natural resources. b. their populations are self-sufficient. c. they lack economic and legal stability. d. they are located in difficult to access regions.