The income effect of an increase in the price of backpacks (a normal good) is a(n)
a. decrease in the demand for backpacks
b. decrease in the quantity demanded of backpacks
c. increase in the demand for backpacks
d. increase in the quantity demanded of backpacks
e. new demand curve because everything else is no longer constant
B
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Use the following diagram to answer the next question.
Which of the following would have caused a move from point 1 to point 2 in the diagram above?
A. An increase in government spending. B. An increase in worker productivity. C. An increase in taxes. D. An increase in imports.
How is the gain from exports distributed between consumers and domestic producers?
What will be an ideal response?
What are the factors that have been identified that affect a migration decision? Give examples of each
What will be an ideal response?
If, as an entrepreneur, I am earning accounting profits of $60,000 per year and the opportunity cost of my time is $50,000
A) I am earning economic profits of $10,000. B) I am earning economic profits of $60,000. C) I am earning economic losses of $10,000. D) I should close my business.