Which of the following statements is false?
A) A change in the price of good X will usually change the quantity supplied of good X, ceteris paribus.
B) A change in the number of sellers of a good can change the supply of that good.
C) Price and quantity supplied are directly related.
D) A vertical supply curve represents a direct relationship between price and quantity supplied.
D
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When comparing the annual inflation rate in the United States based on the CPI with the annual inflation rate based on the PCE price index, the data show that the two inflation rates
A) move in opposite directions. B) remained constant over the forty year period after 1979. C) steadily increased over the forty year period after 1979. D) move up and down in similar but not identical ways. E) both fluctuate, but the fluctuations have little relationship to each other.
The vicious circle of poverty refers to the fact that in LDCs,
a. low living standards lead to declines in population growth. b. too much spending leads to periods of recession. c. people are poor because too much is spent on capital goods. d. there are not enough people in the under-15 age groups. e. poverty leads to low investment in capital goods.
A market economy is an economy where:
a. economic decisions are passed down from government authority and resources are owned by the government. b. economic decisions are economic decisions are centralized, resources are owned by private individuals, and businesses supply goods and services based on demand. c. economic decisions are decentralized, resources are owned by private individuals, and businesses supply goods and services based on demand. d. economic decisions are passed down from government authority and resources are owned by individuals.
Rent subsidies and wage subsidies are better than price controls at helping the poor because they have no costs associated with them
a. True b. False Indicate whether the statement is true or false