Other things being equal, when the money price of a good increases, its relative price
A. falls to zero.
B. stays the same.
C. decreases.
D. increases.
Answer: D
You might also like to view...
Which method of corporate finance is used the most? Why?
What will be an ideal response?
Under a _____, the assets of two firms that operate in the same market are put under a single ownership
a. vertical merger b. horizontal merger c. vertical acquisition d. horizontal acquisition
Which of the following is an example of a zero-sum game?
a. Jill decides to buy a television set from Jack for $500. b. Angela buys a jacket worth $30 from the apparel store near her apartment. c. Rachel decides to buy Sarah's couch and is willing to pay whatever price Sarah might ask for it. d. Joanna buys a camera at a Thanksgiving sale and gets a tripod free.
If the government taxes a good that generates a negative externality, then the government:
A. will generate tax revenue, but lower economic surplus. B. can increase total economic surplus, but tax revenue will fall. C. will neither increase total economic surplus nor generate tax revenue. D. can increase total economic surplus and generate tax revenue.