Econ131

Refer to Table 4-3. If the law of supply applies to this good, then Q1 could be

190.

Which of the following statements best represents the principle represented by the adage, "There ain't no such thing as a free lunch"?

Benjamin must decide between going to Florida or Brazil for summer vacation.

Which of the following is not a characteristic of a perfectly competitive market?

Different sellers sell differentiated products.

Individual demand curves are summed vertically to obtain the market demand curve.

False

Soup is an inferior good if the demand

for soup falls when income rises.

For a very long time the country of Tofu has had an inflation rate of 8 percent. Suddenly its inflation rate drops to 3 percent. The drop in the inflation rate

could be due to slower money supply growth. We would expect unemployment to be higher.

The law of demand states that, other things equal, when the price of a good

falls, the quantity demanded of the good rises.

The business cycle is the

irregular fluctuations in economic activity.

The law of supply states that, other things equal, when the price of a good

rises, the quantity supplied of the good rises.

If something happens to alter the quantity supplied at any given price, then

the supply curve shifts.