Which is consistent with the law of demand?
a. An increase in the price of ice cream causes an increase in the quantity of ice cream demanded
b. A decrease in the price of bagels causes an increase in the quantity of bagels demanded
c. An increase in the price of candy bars causes no change in the quantity of candy bars demanded
d. A decrease in the price of muffins causes a decrease in the quantity of muffins demanded
b. A decrease in the price of bagels causes an increase in the quantity of bagels demanded
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According to the J curve, the rapid depreciation in the dollar from 1985 to 1987 caused net exports to
A) rise in the short run and fall in the long run. B) rise in the short run and rise further in the long run. C) fall in the short run and rise in the long run. D) fall in the short run and fall further in the long run.
Suppose the following situation exists for an economy: Kt+1/N > Kt/N. Given this information, we know that
A) saving per worker equals depreciation per worker in period t. B) saving per worker is less than depreciation per worker in period t. C) saving per worker is greater than depreciation per worker in period t. D) the saving rate fell in period t. E) none of the above
The opportunity cost of a particular economic activity
a. is the same for each individual considering the activity b. can differ among different individuals considering the activity c. excludes the monetary cost of the activity d. equals the money cost of the activity minus its time cost e. has the same time cost for each individual considering the activity
If Larry Robinson is taxed $100 on an income of $1,000 . Guy Carbonneau is taxed $220 on an income of $2,000 . and Chris Chelios is taxed $390 on an income of $3,000 . the tax system is
a. progressive b. poll c. regressive d. excise e. proportional