The "law of demand" implies that
A. as prices rise, quantity demanded increases.
B. as prices rise, demand increases.
C. as prices fall, quantity demanded increases.
D. as prices fall, demand increases.
Answer: C
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An increase in real dividend income minus taxes represents
A) a pure substitution effect. B) a pure income effect. C) a combination of income and substitution effects. D) neither a pure income effect nor a pure substitution effect.
Laborers of which sector work in the tertiary or service sector?
(a) Teachers, doctors, lawyers, nanotechnologists, musicians and athletes (b) Farmers, fisher people and foresters (c) Manufacturers and processors of raw materials (d) All of the above
A financial asset is liquid:
A. only if it takes the form of cash. B. if it is held by the public and earning interest. C. if it can be carried easily from one place to another. D. if it can be readily exchanged for another asset or good.
Which of the following is most likely to be a major source of growth in per capita GDP?
A. a high investment / GDP ratio B. a high rate of inflation C. rapid population growth D. rapid growth in the money supply