Which of the following statements is FALSE regarding consumer choice?
A. Each change in price has a substitution effect and a real income effect.
B. Purchasing power has an inverse relationship with the rise in income.
C. Diminishing marginal utility is one reason for a downward sloping demand curve.
D. When price falls, the consumer chooses in favor of the cheaper good.
Answer: B
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Which of the following scenarios will shift the labor demand curve to the right?
A. an increase in the use of factory automation B. an increase in the price of a competing, substitute input C. a reduction in the wage rate D. a reduction in the demand for the output produced by labor
In the United States, which part of government investigates claims of subsidies or dumping?
What will be an ideal response?
When someone buys a bond, they give up the bond's price in exchange for:
A. right of ownership. B. future income. C. current income. D. stock.
Exhibit 4-11 Data on supply and demand Bushels demandedper month Price perbushel Bushels suppliedper month 45 $5 77 50 4 73 56 3 68 61 2 61 67 1 57 Which of the following would occur if the government imposed a price floor (support price) of $4 per bushel in the wheat market shown in Exhibit 4-11?
A. Buyers would want to purchase more wheat than is supplied. B. Buyers would not purchase all of the wheat grown. C. Shortage of wheat would increase the price of wheat. D. Farmers would grow less wheat.