Economists use the term ceteris paribus to indicate that
a. supply and demand are in balance.
b. other things are assumed to be constant.
c. the analysis is true for the individual but not for the economy as a whole.
d. their conclusions are based on normative economics rather than positive economic analysis.
B
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Which of the following would cause an unambiguous decrease in the real price of DVD players?
A) A shift to the right in the supply curve for DVD players and a shift to the right in the demand curve for DVD players. B) A shift to the right in the supply curve for DVD players and a shift to the left in the demand curve for DVD players. C) A shift to the left in the supply curve for DVD players and a shift to the right in the demand curve for DVD players. D) A shift to the left in the supply curve for DVD players and a shift to the left in the demand curve for DVD players.
The ability to lower the average costs of production for one product is possible with
a. Economies of scale b. Economies of Scope c. Diseconomies of Scale d. Diseconomies of Scope
With the elimination of the Civil Aeronautics Board (CAB), safety and quality are no longer directly regulated by government, instead, the incentive for airline safety and quality is driven by market reputation
Indicate whether the statement is true or false
A market:
A. always requires face-to-face contact between buyer and seller. B. entails the exchange of goods but not services. C. is an institution or mechanism that brings together buyers and sellers. D. exhibits upsloping demand and downsloping supply curves.