ECO2023 STUDY FOR ALL CHAPTERS

A consequence of increasing marginal costs of producing digital music players in Japan is

Japan will stop short of complete specialization in the production of digital music players.

Because apples and oranges are substitutes, an increase in the price of oranges will cause the demand for apples to increase. This initial shift in demand for apples results in a higher price for apples; this higher price will cause the demand curve for apples to shift to the right. Which of the following correctly comments on this statement?

The statement is false because a change in the price of apples would not change the demand for apples.

The price of compact fluorescent light bulbs fell because of improvements in production technology. As a result, the demand for incandescent light bulbs decreased. This caused the price of incandescent light bulbs to fall; as the price of incandescent light bulbs fell the demand for incandescent light bulbs decreased even further. Evaluate this statement.

The statement is false. A decrease in the price of compact fluorescent light bulbs would decrease the demand for incandescent light bulbs, but a decrease in the price of incandescent light bulbs would not cause the demand for incandescent light bulbs to decrease.

A bond is a financial security that represents

a promise to repay a fixed amount of funds.

A change in which variable will change the market demand for a product?

expected future prices

A corporation is owned by its

stockholders.

A ________ curve shows the marginal cost of producing one more unit of a good or service.

supply

A corporation is the type of business has ________ government rules and regulations affecting it.

the most

A demand curve is defined as the relationship between:

the price of a good and the quantity of that good that consumers are willing to buy.

A demand curve shows

the willingness of consumers to buy a product at different prices.