Automobiles and many other products are differentiated. As a result,
A) we see countries specializing completely in the production of automobiles.
B) consumers of automobiles have difficulty deciding what type of imported automobile to buy.
C) different countries may each have a comparative advantage in producing different types of automobiles.
D) the quality of imported automobiles is less than it could be.
C
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With respect to labor supply, the substitution effect takes account of the point that at higher wage rates
A) a person can afford to take more leisure. B) leisure has become less expensive and so a person consumes less leisure. C) there are no factors inducing a person to work less. D) leisure has become more expensive and so a person consumes less leisure.
A shift in the demand curve to the right represents
A) an increase in demand. B) a decrease in demand. C) an increase in quantity demanded. D) a decrease in quantity demanded.
Which of the following will cause an increase in producer surplus?
a. the imposition of a binding price ceiling in the market b. buyers expect the price of the good to be lower next month c. the price of a substitute increases d. income increases and buyers consider the good to be inferior
A person goes into a store and buys a computer for $1,210. In this case, price is acting as a
A) resource. B) good. C) rationing device. D) capital instrument. E) factor of production.