In general, a change in the price of a good:

A. usually has no effect.
B. causes both an income and substitution effect.
C. causes a substitution effect only.
D. causes an income effect only.


Answer: B

Economics

You might also like to view...

A measure of a country's production is its

A) general domestic production. B) gross domestic product. C) gross daily production. D) general daily product. E) gross total output.

Economics

An assumption of neoclassical growth theory is that

A) technological change is random. B) technological change can be influenced by savings. C) more growth encourages more technological change. D) None of the above answers is correct.

Economics

Production inefficiency is most likely to occur when the principal has more information about work performance than the agent does

Indicate whether the statement is true or false

Economics

Capital accounts measure

a. the foreign asset holdings of a nation and that nation's asset holding abroad b. d and e c. changes in the foreign asset holdings of a nation and the difference between its exports and imports d. the difference between a nation's exports and imports e. changes in the foreign asset holdings of a nation and that nation's asset holdings abroad

Economics