An increase in taxes will ________ consumption spending, and a decrease in transfer payments will ________ consumption spending
A) decrease; increase B) decrease; decrease C) increase; decrease D) increase; increase
B
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For a ____, if incomes rise and prices do not change, quantity demanded will increase.
A. normal good B. inferior good C. Giffen good D. substitute good
Refer to Figure 5-1. Marginal social benefit is represented by which curve?
A) Supply B) D1 C) D2 D) All of the above represent marginal social benefit.
If there are no barriers to entry into an industry
A) short-run economic profits must be zero. B) long-run economic profits must be zero. C) both short-run and long-run economic profits must be zero. D) short-run and long-run profits must still be positive.
Evaluate the argument: “Restricting imports from other nations will save U.S. jobs.”
What will be an ideal response?