If an economist finds that when consumer incomes increase, consumers buy more cars, Ceteris paribus, then the economist is assuming
A. the price of cars must be decreasing.
B. all other things remain constant.
C. the price of gas must be decreasing.
D. the interest rate on car loans must be decreasing.
Answer: B
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In explaining economic growth, new growth theory stresses the role played by
A) women in the workforce. B) the government in directing the nation's investments. C) population moderation. D) the participation rate of elderly workers. E) human choices.
As new monopolistically competitive firms enter the market, the demand facing each firm __________, causing the price charged by each firm to __________. In the long run, each firm will earn a __________ profit
a. falls; rise; positive b. rises; fall; positive c. falls; rise; normal d. rises; fall; normal e. falls; fall; normal
If a household has $40,000 in taxable income and its tax liability is $4,000, the household's average tax rate is
a. 10 percent. b. 25 percent. c. 40 percent. d. 50 percent
To motivate line employees and keep them interested in their work, supervisors may institute any of the following BUT
a. job specialization b. job rotation c. mentoring d. four day work weeks