Identify the reasons why the quantity demanded of a product increases as the price of that product decreases
a. as the price declines, the real income of the consumer increases
b. as the price of product A declines, it makes it more attractive than product B
c. as the price declines, the consumer will always demand more on each successive price reduction
d. a and b
e. a and c
d
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Assume that average labor productivity is the same in each country. Based on the information in the table, which country has the highest real GDP per capita?CountryPopulation (millions)Share of Population Employed (%)A10060B15055C7550D25045E9540
A. Country A B. Country B C. Country C D. Country D
Two methods used to adjust nominal values for inflation are:
A. substituting and complementing. B. real and nominal. C. indexing and deflating. D. aggregating and disaggregating.
The present value of $300,000 in 12 years at 4 percent interest is approximately:
A. $312,451. B. $187,379. C. $427,126. D. None of these statements is true.
Exhibit 6A-3 Consumer equilibrium
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Given the budget line and indifference curves shown in Exhibit 6A-3, point V is:
A. inferior to point X. B. lowest attainable level of total utility. C. unobtainable. D. consumer equilibrium.