For a typical product, a decrease in consumer income will cause the market demand for the product to
a. decrease, which is a shift to the left of the demand curve.
b. decrease, which is a shift to the right of the demand curve.
c. increase, which is a shift to the left of the demand curve.
d. increase, which is a shift to the right of the demand curve.
A
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Two reasons why valuing goods at their market prices is different than valuing them at their factor costs include
A) depreciation and investment. B) exports and imports. C) personal taxes and corporate taxes. D) indirect taxes and subsidies.
Transactions costs are
A) zero in financial markets. B) zero in financial intermediaries. C) the costs of direct financial transactions. D) equal to the taxes imposed on financial transactions.
Assume the bonds below have the same term and principal and that the state or local government that issues the municipal bond has a good credit rating. Which list has bonds correctly ordered from the one that pays the highest interest rate to the one that pays the lowest interest rate?
a. corporate bond, municipal bond, U.S. government bond b. corporate bond, U.S. government bond, municipal bond c. municipal bond, U.S. government bond, corporate bond d. U.S. government bond, municipal bond, corporate bond
?An aggregate supply curve with a positive slope is associated with an economy in which:
A. ?input prices and final goods prices always change by the same amount. B. ?firms expect output prices to be unaffected by changes in input prices. C. ?nominal wages and salaries do not change much in the short run. D. ? firms expect consumer demand to be unaffected by changes in prices of final goods.