Several studies have shown promising links between green tea consumption and cancer prevention. How does this affect the market for green tea?
A) The quantity of green tea demanded increases because of a change in tastes in favor of green tea.
B) The green tea demand curve shifts to the right because of a change in tastes in favor of green tea.
C) The green tea demand curve shifts to the left because this new information will increase the price of green tea.
D) The quantity of green tea demanded decreases because this new information will increase the price of green tea.
Answer: B
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Which of the following anti-inflation policies imposes costs on society?
A) price controls B) indexation C) reduced growth in nominal demand D) all of these
Of the owners of the following firms, which does not have unlimited liability for the business' debts?
A) Roy Ray's Grocery Store, Roy Ray, proprietor B) the partnership of Reese and Jones, Attorneys-at-Law C) the Huber Corporation D) Wren's Feed and Seed Store, a proprietorship