How does an increase in income affect the market of bus rides (inferior good)?
a. The demand curve for bus rides to shift to the right
b. The demand curve for bus rides to shift to the left
c. The supply curve for bus rides to shift to the right
d. The supply curve for bus rides to shift to the left
b
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The total volume of business sales in our economy is several times larger than GDP because ________.
A. GDP does not take taxes into account B. GDP grossly understates the value of our annual output C. GDP excludes intermediate transactions D. Total sales are in money terms and GDP is always stated in real terms
Consumers regard Dell computers and Apple computers as substitutes. If the price of a Dell computer decreases, the
A) demand for Dell computers increases. B) demand for Apple computers increases. C) demand for Apple computers decreases. D) supply of Dell computers increases. E) demand for Dell computers decreases.
If I get 10 units of pleasure from my first ice cream cone and 2 less units than before from each succeeding cone, I will buy ________ cones and gain ________ units of consumer surplus if the price of a cone = to 5 units of pleasure.
A. 6; 30 B. 4; 28 C. 2; 18 D. 3; 9
The MPC can be used to predict the effect of a tax increase.
Answer the following statement true (T) or false (F)