Refer to the above diagram. The budget line shift which moves the consumer's equilibrium position from point A to point B suggests:
A) an increase in the quantity of Y demanded.
B) a decrease in the quantity of Y demanded.
C) a leftward shift in the demand curve for Y .
D) a rightward shift in the demand curve for Y .
Ans: A) an increase in the quantity of Y demanded.
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Suppose Carmen buys ramen noodles. To determine whether ramen noodles are a normal or inferior good for her, we must observe how Carmen
A) responds to a change in the price of a substitute for ramen noodles. B) responds to a change in the price of a complement for ramen noodles. C) responds to a change in the price of ramen noodles itself. D) responds to a change in her income. E) responds to all of the above.
An issue never confronted effectively by GATT, but considered an important issue for WTO is that of
A) the promotion of freer World trade. B) the promotion of freer World commodity trade. C) the promotion of freer World services trade. D) the lowering of tariff rates. E) the liberalization of trade.
If a good gives rise to substantial external benefits to society that are associated with its production and/or consumption, then the good likely has too many resources devoted to its production
a. True b. False Indicate whether the statement is true or false
International trade has the potential to ____ the availability of goods and services to ____
a. increase; those nations who export more than they import b. increase; nations that have an absolute advantage in the production of a good or service c. increase; all nations d. decrease; all nations