Which of the following statements is FALSE?
A) An increase in income causes an increase in the demand for a normal good.
B) An increase in income causes a decrease in the demand for an inferior good.
C) A decrease in income causes the demand curve for a normal good to shift to the left.
D) An increase in income causes the demand curve for an inferior good to shift to the right.
D
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"Since the wind and the flowing rivers can take away industrial waste without charge, polluting is a profitable activity even when people are seriously harmed downwind or downstream, unless environmental regulators stop it." This statement is
a. false if the property rights of downwind or downstream individuals are protected. b. true if the property rights of industrialists are enforced. c. never true. d. always true.
Suppose three firms form a cartel and agree to charge a specific price for their output. Each individual firm has an incentive to maintain the agreement because the firm's individual profits will be the greatest under the cartel arrangement
a. True b. False Indicate whether the statement is true or false
Which of the following statements is TRUE if your money income stays the same but the price of one good that you are buying goes up?
A. You will have to reduce the quantities you purchase of all goods. B. Your nominal income has been decreased. C. Your real income has increased. D. Your effective purchasing power falls.
The level of household savings constrains firm investment.
Answer the following statement true (T) or false (F)