Assuming that travel from New York to Los Angeles is a normal good, a decrease in consumer income, other things being equal, will:
a. decrease the quantity demanded of travel to Los Angeles.
b. increase the demand for travel to Los Angeles.
c. decrease the demand for travel to Los Angeles.
d. increase the quantity of travel to Los Angeles demanded.
c
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The Coase theorem says that, if the appropriate property right is assigned to __________, an efficient solution to an externality problem will be achieved
a. the party causing the externality b. the victim of the externality c. the party that can avoid the externality at the higher cost d. the party that can avoid the externality at the lower cost e. either one of the parties involved
An increase in planned savings, all else held constant, will always result in
a. a slowdown in the circular flow of income. b. an increase in the circular flow. c. an increase in planned investment spending. d. an increase in the price level.
Frictional and structural unemployment both exist
A. when the economy is in long-run equilibrium. B. only when the economy is in recession. C. when inflation becomes very high. D. only when the economy is at the peak of the business cycle.
Profit-maximizing firms want to ________ the difference between total revenue and total cost.
A. minimize B. maximize C. eliminate D. equalize