A downsloping demand curve can be derived for a normal product by increasing its price in the consumer-behavior model and noting:
A. The increase in the utility-maximizing quantity of that product demanded
B. The decrease in the utility-maximizing quantity of that product demanded
C. A substitution effect that encourages more consumption of that product
D. An income effect that encourages more consumption of that product
B. The decrease in the utility-maximizing quantity of that product demanded
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Which of the following is NOT included in the income approach to calculating GDP?
A) wages B) profits C) interest D) net exports of goods and services E) rent
In graphical form, the presence of an external benefit that is ignored by consumers can be shown as
A) a market demand curve to the left of the market demand curve for which the consumers take the external benefit into account. B) a market demand curve to the right of the market demand curve for which the consumers take the external benefit into account. C) a market demand curve the same as the market demand curve for which the consumers take the external benefit into account. D) the absence of a market demand curve.