If consumers switch away from eating margarine at the same time that the number of margarine suppliers increases, then
a. these two effects cancel each other out and there is no change in the margarine market equilibrium
b. the demand curve shifts left and the supply curve shifts right
c. there is a margarine price increase
d. there is an excess demand for margarine
e. the equilibrium quantity of margarine must increase
B
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Define the term normal good. How can a normal good be recognized from
(i) the Engel curve diagram, (ii) the income elasticity of demand, and (iii) the substitution and income effects of a price change?
Protectionism in international trade saves jobs in the specific industry being protected, but costs jobs in other unprotected industries.
Select whether the statement is true or false. A. True B. False
To an economist, the economic costs associated with the use of resources include
A. explicit and implicit costs. B. explicit, but not implicit, costs. C. neither implicit nor explicit costs. D. implicit, but not explicit, costs.
Figure 33-1
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Which of the following is true about the economy depicted in Figure 33-1?
A. Tax incentives are being used to stimulate aggregate supply. B. Policymakers believe the costs of unemployment are higher than the costs of inflation. C. Contractionary monetary policy is being enacted to fight inflation. D. Prices are rising but real GDP is falling.