Which of the following statements about a market for used cars is incorrect?
A. The presence of low-quality cars decreases consumers' willingness to pay.
B. An increase in price increases the quantity of high-quality cars supplied.
C. An increase in price decreases the quantity of low-quality cars supplied.
D. The decrease in the quantity of high-quality cars lowers consumers' willingness to pay.
Answer: C
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The BP curve shifts to the left when:
a. the exchange rate falls. b. interest rates rise. c. income rises. d. imports increase.
In order to demand a good, the buyer must:
a) Want the good very much. b) Think that the good has significant utility. c) Be aware of the opportunity costs. d) Be both willing and able to pay for it.
If government purchases increase and net taxes decrease, _____
Fill in the blank(s) with the appropriate word(s).
Which of the following is NOT correct regarding the theories of income distribution?
A) Dealing with how income ought to be distributed is a normative issue. B) The productivity standard for the distribution of income is stated "to each according to what they produce." C) The egalitarian principle of income distribution is "to each exactly the same." D) Dealing with how income should be distributed is a positive economic issue.