Suppose the demand for X is given by Qxd = 100 - 2PX + 4PY + 10M + 2A, where PX represents the price of good X, PY is the price of good Y, M is income and A is the amount of advertising on good X. If advertising on good X increases by $10,000, then the demand for X will
A. decrease by $20,000.
B. decrease by $100,000.
C. increase by $20,000.
D. increase by $100,000.
Answer: C
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When foreign residents buy U.S. Treasury securities to finance the budget deficit
A) we can also anticipate a decrease in the trade deficit. B) the trade deficit will not be affected. C) we can also anticipate an increase in the trade deficit. D) the public debt will be reduced.
Which of the following is the most important pre-requisite to a well-functioning market economy?
A) Goods must be non-scarce. B) Everyone must have an adequate income. C) Participants must follow some clear, general rules. D) People must have roughly similar tastes and preferences. E) There must be approximate equality of incomes.
In a closed economy, the total quantity of goods demanded equals the sum of
A) consumption spending, investment spending, and government spending. B) consumption spending, national saving, and taxes. C) consumption spending, government spending, and taxes. D) investment spending, national saving, and taxes.
If a pair-wise majority vote was held and the voters' preferences are shown in the table, assuming public zoo and transportation was the first pair to be voted on, which voter will be happiest with the outcome?
A. Bob
B. Carlo
C. Abby
D. Abby and Bob will be equally happy.