When the price of a good rises, the resulting change in quantity demanded due solely to the decline in your income's purchasing power is called the
a. Giffen-good phenomenon.
b. law of demand.
c. substitution effect.
d. income effect.
d. income effect.
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The percentage of the world's population that lives in the advanced economies is
A) between 20 percent and 30 percent. B) between 51 percent and 70 percent. C) more than 71 percent. D) between 31 percent and 50 percent. E) less than 20 percent.
Which of the following would NOT cause a shift in the IS curve?
A) an increase in the domestic real interest rate B) an increase in consumer confidence C) a decrease in the expected future profitability of capital D) a decrease in government purchases
Other factors held constant, a decrease in resource prices will shift the aggregate:
a. demand curve leftward. b. demand curve rightward. c. supply curve leftward. d. supply curve rightward.
An economic failure of an embargo is said to have occurred if
A. the prices of the embargoed goods do not decline in the imposing country. B. the price of the good exported by the imposing country to the target country rises substantially in the target country when the embargo is imposed. C. the target country suffers a greater welfare loss than does the imposing country. D. the embargo inflicts little damage on the target country but possibly a greater damage on the imposing country.