How would economists interpret the following facts? Fact: Over the past two decades the relative price of new textbooks has risen dramatically. Another fact: Record numbers of new textbooks have been purchased by students over the past two decades
A) The law of demand has been violated.
B) The law of supply has been violated.
C) The supply and demand process in new textbooks hasn't worked correctly.
D) The demand for textbooks has increased.
E) The facts aren't true.
D
Economics
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An increase in government spending with no change in taxes leads to a
A) lower income level B) lower price level C) smaller money supply D) higher interest rate E) higher bond price
Economics
When we say that an individual behaves according to "rational self-interest," we mean that this individual
A) is motivated by greed. B) will always buy the most fashionable items available. C) will always buy the cheapest products available on the market. D) is making choices that he or she believes will leave him or her better off.
Economics