Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for used clothing, an inferior good. Which panel describes what happens in this market as a result of a decrease in income?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
C
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Provide a concise statement about the relationship between population growth and absolute poverty, female wages, rural-urban migration, availability of pensions, availability of healthcare, availability of education, and rate of investment
What will be an ideal response?
Possible causes of an upward-sloping demand curve are:
a. consumers judge the quality of a product based on quality b. consumers judge the quality of a product based on price c. consumers purchase a product based on snob appeal d. a and b are true e. b and c are true
Economic models
a. cannot be useful if they are based on false assumptions. b. were once thought to be useful, but that is no longer true. c. must incorporate all aspects of the economy if they are to be useful. d. can be useful, even if they are not particularly realistic.
The __________ the opportunity cost of doing something, the __________ likely a person will do that something
A) lower; less B) lower; more C) higher; more D) higher; less E) b and d