If a yet-to-be released video game receives a positive review in a popular gaming magazine, what happens to the demand curve for the video game?
A) The demand curve is expected to shift to the right.
B) The demand curve is expected to shift to the left.
C) The demand curve is not expected to change.
D) For those who read the review, demand shifts to the left. For those who don't read the review, demand shifts to the right.
A
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The Smoot-Hawley Tariff Act of 1930 has generally been associated with
A) falling tariffs. B) free trade. C) intensifying the worldwide depression. D) recovery from the worldwide depression. E) non-tariff barriers.
Consider the market for medical doctors. Suppose the opportunity cost of going to medical school increases for many individuals. Suppose it generally takes about ten years to become a practicing doctor. Holding all else constant, in ten years the equilibrium quantity of doctors will
a. increase. b. decrease. c. not change. d. It is not possible to determine what will happen to the equilibrium quantity.
With consumption expenditure on the vertical axis and disposable income on the horizontal axis, the consumption function intersects the 45 degree line at $8 trillion. This result indicates that
a) autonomous consumption spending is $8 trillion b) consumption spending is $8 trillion when disposable income is $8 trillion c) consumption spending is less than $8 trillion because taxes must be paid d) consumption spending is more than $8 trillion because taxes have been paid
If the price of an inferior good rises, the income effect will result in households buying ________ of the good and the substitution effect will result in households buying ________ of the good.
A. more; more B. more; less C. less; more D. less; less