Suppose that as the price of apples rises, people switch from eating apples to eating oranges. This is known as:
A. a decrease in the demand for apples.
B. the normal effect of a price change.
C. the income effect of a price change.
D. the substitution effect of a price change.
Answer: D
You might also like to view...
More generous unemployment benefits ________ the opportunity cost of looking for a new job and therefore ________ the job search process
A) lower; extend B) lower; does not change C) lower; shorten D) raise; extend E) raise; shorten
Under the Sarbanes-Oxley Act of 2002, the provision that established the PCAOB to supervise accounting firms is an example of
A) regulate for transparency. B) supervisory oversight. C) separation of functions. D) socialization of information production.
Between 1960 and 2012, the proportion of workers belonging to a union
a. decreased substantially in the private sector. b. was approximately constant in the private sector. c. decreased substantially in the government sector. d. was approximately constant in the government sector.
Nominal GDP is another term for
A. current dollar GDP. B. constant dollar GDP. C. adjusted dollar GDP. D. relative value GDP.