By drawing a demand curve with price on the vertical axis and quantity on the horizontal axis, economists assume that the most important determinant of the demand for a good is
A) consumer income.
B) consumer tastes and preferences.
C) the price of the good.
D) the quality of the good.
Answer: C
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The U.S. economy has grown constantly over the years.
Answer the following statement true (T) or false (F)
Consumer income can be used for three things: purchases of goods and services, paying taxes and saving
Indicate whether the statement is true or false
Refer to the diagrams for two separate product markets. Assume that society's optimal level of output in each market is Q0 and that government purposely shifts the market supply curve from S to S1 in diagram (a) on the left and from S to S2 in diagram (b) on the right. The shift of the supply curve from S to S1 in diagram (a) might be caused by a per-unit
What will be an ideal response?
Which of the following is not true about macroeconomic models?
A. They are based on theories of macroeconomic behavior. B. They attempt to identify key determinants of macro performance. C. They tend to agree with each other about how the economy works. D. They are mathematical summaries of the economy's performance.