The ________ effect refers to the change in quantity demanded for a good that results from the effect of a change in the good's price on consumer's purchasing power
A) ceteris paribus
B) population
C) substitution
D) income
Answer: D
You might also like to view...
If this is a closed economy, the price of a TV will be ________.
A. $75 B. $175 C. $275 D. $125
Economists say that long-run economic growth is almost entirely due to:
A. rising productivity. B. population growth. C. a democratically elected government. D. a balanced budget.
If more buyers came into the market for a good, we would expect to see the market demand curve
A) shift inward and to the left. B) remain unchanged since none of the determinants of individual demand changed. C) shift outward and to the right. D) reflect a positive relationship between price and quantity demanded.
Loan guarantees provided by the government for specific private-sector investments tend to:
A. Generate high positive returns for the government B. Increase the financial risk faced by the private investors C. Attract private investors into the specific project D. Eliminate the moral hazard problem among investors