The above figures show the market for HD televisions. If people's incomes increase and HD televisions are a normal good, which figure shows the effect of this change?
A) Figure A
B) Figure B
C) Figure C
D) Figure D
E) None of the figures represent this change.
A
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In Econland autonomous consumption equals 700, the marginal propensity to consume equals 0.80, net taxes are fixed at 50, planned investment is fixed at 100, government purchases are fixed at 100, and net exports are fixed at 40. The slope of the expenditure line is:
A. 0.20. B. 0.80. C. 0.99. D. 0.90.
The market will overproduce goods that have external costs because
A. Producers experience lower costs than society. B. Producers cannot keep these goods from consumers who do not pay, so they have to produce greater amounts. C. The government is not able to produce these goods. D. Producers experience higher costs than society.
If a positive permanent supply shock were to occur, the resulting equilibrium would be a:
A. higher level of output at lower prices. B. lower level of output and prices. C. higher level of output and prices. D. lower level of output at higher prices.
Which of the following would shift the demand for gasoline to the left?
A. An increase in the marginal cost of extracting oil from large reserves in the Middle East. B. A national speed limit maximum set below existing state speed limits. C. New regulatory restrictions on the construction of new oil refineries. D. An excise tax levied on sellers of gasoline.