Which of the following describes the substitution effect of a price change?
A) The change in quantity demanded of a good that results from the change in the price of a substitute for the good.
B) The change in demand that results from a change in price, making the good more or less expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power.
C) The change in quantity demanded of a good that results from the effect of a change in price on consumer purchasing power, holding everything else constant.
D) The change in quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods, holding constant the effect of the price change on consumer purchasing power.
D
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According to the law of increasing costs, as the United States expends more of its resources on reducing air pollution,
A. the quantity of other goods that must be given up for further reductions in air pollution will decrease. B. the quantity of other goods that must be given up for further reductions in air pollution will increase. C. the social cost of additional air pollution will increase. D. there will be no change in the marginal cost of reducing air pollution.
Using a graph, analyze the Great Depression from a Keynesian perspective. What happened to unemployment?
What will be an ideal response?
The supply curve for a competitive firm is
A) its entire MC curve. B) the upward-sloping portion of its MC curve. C) its MC curve above the minimum point of the AVC curve. D) its MC curve above the minimum point of the ATC curve. E) its MR curve.
Private property rights involve
A. rights granted by the government for renewable terms of 100 years or more. B. exclusive rights to use, transfer, and exchange the property. C. exclusive rights to use property, but not to exchange the property. D. rights to enjoy the property in any way desired but not to transfer or exchange the property.