If Apple's iTunes Music Store increases its "fee" for its music downloads, the law of demand predicts that
A) the number of iTunes music downloads would increase.
B) there would be no change in the demand for iTunes music downloads.
C) the number of iTunes music downloads would decrease.
D) iTunes music supply would change but demand would not.
C
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In order for any given commodity to be considered money, it has to
A) be issued and controlled by some governmental institution. B) have some intrinsic value. C) be generally acceptable as a means of payment. D) be used in barter transactions. E) be convertible into gold or silver.
All of the following are characteristics of allocation by rationing EXCEPT
a. lack of fairness. b. high administrative cost. c. efficiency. d. diminished incentive for workers.
An example of a negative externality is:
A. smell of a pizza shop making pizza. B. the traffic created by a city hosting a popular event. C. people getting flu shots during flu season. D. All of these are examples of negative externalities.
Which of the following is a policy option to eliminate an AD shortfall?
A. Reduce taxes. B. Reduce transfer payments. C. Decrease government purchases. D. All of the choices are correct.