Answered: You are analyzing the demand for good…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

1. You are analyzing the demand for good X. Which of the following will result in a shift to the right of the demand curve for X?

Select one:

a. A decrease in the price of X

b. An increase in the price of a good that is a complement to good X

c. All of the above

d. An increase in the price of a good that is a substitute for X

2. The Clean Air Act is designed to restrict automobile emissions and reduce the external costs of air pollution. The economic analysis used to develop the Clean Air Act was:

Select one:

a. Macroeconomic.

b. None of the above

c. Normative.

d. Positive.

3. In a perfectly competitive market:

Select one:

a. No single buyer or seller can significantly affect the market price.

b. There is a single seller.

c. There are a few buyers.

d. There is a cartel.

4. Alfred derives utility from consuming iced tea and lemonade. For the bundle he currently consumes, the marginal utility he receives from iced tea is 16 utils, and the marginal utility he receives from lemonade is 8 utils. Instead of consuming this bundle, Alfred should:

Select one:

a. Buy more lemonade and less iced tea.

b. Buy more iced tea and lemonade.

c. Buy more iced tea and less lemonade.

d. None of the above is necessarily correct.

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