The change in people's purchasing power that occurs when the price of one good that they purchase changes is the
A) law of diminishing marginal utility.
B) real-income effect.
C) substitution effect.
D) price income effect.
Answer: B
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Which of the following could be a direct cause of investment spending increasing?
A. The wealth of consumers increasing causing them to radically increase their purchases. B. Interest rates increase. C. A firms costs unexpectedly drop making their profit margin higher. D. Expected future income decreases.
Because fewer people are now needed to perform an average job, it is said that the information technology revolution has played an important role in slowing down productivity in the United States
a. True b. False Indicate whether the statement is true or false
Price and concentration ratios are inversely related
Indicate whether the statement is true or false
Refer to Figure 35.3 for the production possibilities curves for the United States and Mexico. These two curves indicate that
A. The United States has a comparative advantage in the production of machinery. B. The United States does not have an absolute advantage in the production of either good. C. The United States has an absolute advantage in the production of both goods. D. Mexico has an absolute advantage in the production of machinery.