If there is an inverse relationship between two variables, the graph relating the two variables will be:
A. horizontal.
B. upward-sloping.
C. vertical.
D. downward-sloping.
Answer: D
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The short run in macroeconomics is the period in which
A) prices change significantly. B) the demand curve is vertical. C) no contracts or agreements exist to fix prices. D) demand determines output.
Luxury brands like designer sunglasses are goods that may exhibit snob effects. Suppose this is true, and the price for a particular brand increases. What happens to the component changes in the quantity demanded?
A) Pure price effect and snob effect are negative B) Pure price effect and snob effect are positive C) Pure price effect is positive, snob effect is negative D) Pure price effect is negative, snob effect is positive
Economics
a. studies human behavior when scarcity exists and choices must be made b. provides the only reasonable explanation of how people make decisions c. can accurately explain all human behavior since it is based on the assumption of rationality d. is better at showing the way things ought to be than the other social sciences are e. is the only social science that can explain the existence and behavior of public institutions
The behavior of the perfectly competitive firm: a. theoretically leads to an inefficient allocation of resources
b. maximizes the benefits to consumers, given the resources available to the economy. c. reduces output in order to raise prices in the short-term. d. results in excess capacity and inefficiency.