Consider the market for feather pillows. If there is an increase in the price of feather dusters, a substitute in production for feather pillows, then
A) there is a downward movement along the demand curve for feather pillows.
B) the supply curve for feather pillows shifts leftward.
C) the price of feather pillows decreases.
D) the demand curve for feather pillows shifts rightward.
E) the demand curve for feather pillows shifts leftward.
B
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In the figure above, when disposable income equals $10 trillion,
A) consumption expenditure is greater than disposable income but it is not possible to determine if consumers are saving or dissaving. B) consumption expenditure is less than disposable income, so consumers are dissaving. C) consumption expenditure is less than disposable income, so consumers are saving. D) consumption expenditure is greater than disposable income, so consumers are saving. E) consumption expenditure is greater than disposable income, so consumers are dissaving.
In order to draw an individual's budget line, we must know
A) prices and preferences. B) prices and income. C) income and preferences. D) prices, income, and preferences.
The managers of government bureaucracies have an incentive to _____
a. maximize the size of their budgets b. minimize the size of their staff c. maximize the profits from their bureaus d. minimize rent-seeking
In the short run, a monopolistically competitive firm
A. never earns positive economic profits. B. always earns positive accounting profits. C. can earn positive, negative, or zero economic profits. D. always earns positive economic profits.