Goods A and B are substitutes. If the price of good A falls, the marginal revenue product (MRP) curve of good B

A. will become more inelastic.
B. will shift in.
C. will not change.
D. will shift out.

Answer: B

Economics

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The following figure shows the demand curves for baby formula. Which of the following changes is likely to happen if the price of baby formula increases?

a. a shift of the deman curve from D2 to D1
b. a movement from point b on the demand curve D1 to point c on the demand curve D2
c. a shift of the demand curve from D1 to D2
d. a movement along the demand curve D2 from point d to point c
e. a movement along the demand curve D1 from point a to point b

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Economics

A curve with a positive but decreasing slope represents a relationship where, every time the variable measured along the horizontal axis increases by one unit, the variable measured along the vertical axis

A) increases by a decreasing amount. B) decreases. C) does not change by much. D) increases by an increasing amount. E) increases by a constant amount.

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Economics

Suppose that if your income is $50,000, your tax is $5,000, but if your income is $100,000, your tax is $8,000. Such a tax is

A. Regressive. B. An excise tax. C. Proportional. D. Progressive.

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Economics

The financing of U.S. export transactions, ceteris paribus

A. reduces the amount of foreign currency held by the Fed. B. reduces U.S. interest rates. C. reduces U.S. GDP. D. increases the amount of foreign currency held by U.S. banks.

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Economics