We derive the demand curve for X from indifference curves and a budget constraint by changing the
A. level of income.
B. price of Y.
C. price of X.
D. consumers? preferences.
Answer: C
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Imagine a 2,000-acre park with picnic benches, trees, and a pond. Suppose it is publicly owned, and people are invited to enjoy its beauty. Of course, when the weather is nice it is difficult to find parking, and the trash cans overflow with food wrappers on summer afternoons. Otherwise, it is a great place. The park is not a pure public good because
a. when trash cans overflow, a negative externality becomes a positive externality b. it is not fenced to control access c. weather is nice only in the summer, limiting optimal use d. if too many people use it, one person's use can prevent others from using it as well e. you have to drive to get there and the automobile is a private good
If the demand for a product increases, but the supply for the product stays the same, which of the following would happen?
a. There will be a scarcity of the product. b. There will be an equilibrium quantity of the product. c. There will be a shortage of the product. d. There will be a surplus of the product.
The infant-industry argument for trade protection holds that an industry needs government protection from imports until it becomes competitive enough in world markets.
a. true b. false
If the demand for an asset increases, its:
A. Price will increase and the rate of return for new investors of this asset will increase B. Price will decrease and the rate of return for new investors of this asset will increase C. Price will decrease and the rate of return for new investors of this asset will decrease D. Price will increase and the rate of return for new investors of this asset will decrease