Which of the following is likely to shift the current demand curve for a normal good to the right?
a. a decrease in the good's price if the good is a normal good
b. an increase in the price of a complementary good
c. an expectation of a shortage in the future
d. a decrease in income if the good is a normal good
e. an expectation of a surplus in the future
Answer: c. an expectation of a shortage in the future
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When conducting cost-benefit analysis, it is important to ignore previously incurred costs and previously received benefits
Indicate whether the statement is true or false
Supply-side economics calls for:
a. lower taxes on businesses and individuals. b. regulatory reforms to increase productivity. c. government subsidies to promote technological advance. d. All of these.
Hannah and Chris each like jewelry and music by the Rolling Stones. If we were to graph an indifference curve with jewelry on the horizontal axis and CDs by the Rolling Stones on the vertical axis, then
a. Hannah and Chris would have identical indifference curves. b. Hannah's indifference curve would be higher than Chris's indifference curve. c. Chris's indifference curve would be higher than Hannah's indifference curve. d. Because we do not know the intensity of each woman's preferences, we do not have enough information to compare their indifference curves.
Which of the following will most likely occur under a system of clearly defined and enforced private property rights?
What will be an ideal response?