Refer to the accompanying figure. Suppose the solid line shows the current demand for coffee. In response to a news story explaining that coffee causes heart disease, you should expect:
A. the demand curve to shift to D(A) because some people will stop drinking coffee.
B. neither a change in quantity demanded nor a shift in demand.
C. the demand curve to shift to D(B) in anticipation of higher future prices.
D. the quantity of coffee demanded to decrease, but no shift in the demand curve.
Answer: A
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Mr. Clooney inherited a sum of $30,000 in 1990. If the price index for 1990 was 100 and the price index for 2014 is 188, the value of the money he inherited in 2014 dollars is ________
A) $45,200 B) $56,400 C) $38,800 D) $48,000
A decrease in autonomous consumption ________
A) lowers planned expenditures B) raises equilibrium output for any level of the interest rate C) causes a movement down along the IS curve D) all of the above E) none of the above
The ratio of a change in consumption to a change in income is the:
a. consumption function. b. propensity to consume. c. average propensity to consume. d. extra propensity to consume. e. marginal propensity to consume.
Since the 1970s, the percentage of women preparing for careers in professions has been ____, while the female/male earnings ratio has been ____ during this same period
a. rising; declining b. rising; increasing c. falling; increasing d. falling; declining