Which of the following factors prevents economists from comparing prices over different time periods?
a. Changes in the political and economic scenarios in a particular country
b. Changes in consumer earnings
c. Changes in the quality and characteristics of different products
d. Changes in consumer tastes and preferences
c
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If your income goes up by 10% and you increase your pedicures by 5%, then your demand for pedicures is ________.
A. income elastic B. income inelastic C. income unit elastic
In this graph for negative externalities in production, what is true at Q1?
a. The firm would be better off if production was lowered.
b. Society would be better off if production was lowered.
c. Marginal benefits are greater than marginal costs.
d. Marginal benefits are less than marginal costs.
Suppose that Sandy can produce 10 economic reports or make 2 sales calls. Suppose Tim can produce 2 economic reports or make 1 sales call. Which of the following is CORRECT?
A) The opportunity cost for Sandy of producing one economics report is 1/5 of a sales call. B) The opportunity cost for Sandy of producing one sales call is 10 economics reports. C) The opportunity cost for Tim of producing one sales call is 1/2 of an economics report. D) The opportunity cost for Tim of producing one economics report is 2 sales calls.
An increase in the effective tax rate on capital would cause the IS curve to ________ and the LM curve to ________
A) shift down and to the left; be unchanged B) shift down and to the left; shift up and to the left C) shift up and to the right; be unchanged D) shift up and to the right; shift up and to the left