Because the height of the demand curve measures the marginal value of the good to consumers, the fact that a demand curve slopes downward to the right illustrates that
a. as more of a product is consumed, consumers will value additional units less.
b. as more of a product is consumed, consumers will value additional units more.
c. the value of additional units of the good is unrelated to the amount consumed.
d. the cost of production for a good generally rises as more of it is produced.
A
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In 1999, demonstrators representing a mix of traditional and new ideologies disrupted a major international trade meeting in Seattle of
A) the OECD. B) NAFTA. C) the WTO. D) GATT. E) the G8.
If, in a given economy, production is taking place at a point inside the production possibility frontier:
a. resource allocation is technically and allocatively efficient. b. resource allocation is technically efficient but allocatively inefficient. c. resource allocation is technically inefficient and allocatively efficient. d. resource allocation is technically and allocatively inefficient.
Obstacles that make it difficult or impossible for would-be producers to enter a market are known as:
a) Entry tariffs. b) Entry blockades. c) Monopoly profits. d) Barriers to entry.
The ________ effect of a price change refers to the impact of a change in the price of a good on a consumer's purchasing power
A) income B) substitution C) demographics D) ceteris paribus