Other things held constant, private disposable oncome would increase if
A. Taxes increase
B. Government transfers increase
C. Consumption increases
D. Government purchases increase.
Answer: D. Government purchases increase.
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An airline company
A) cannot price discriminate because it is against the law. B) price discriminates by charging higher prices to business travelers. C) price discriminates by charging lower prices to business travelers. D) price discriminates even though its profits are lower because competition forces it to do so. E) has fewer customers because it price discriminates than it would have if it did not price discriminate.
The above figure shows the demand curve for dollars in the yen/dollar exchange market. A movement from point A to point B means that the
A) quantity supplied of dollars has increased. B) quantity demanded of dollars has increased. C) quantity demanded of dollars has decreased. D) quantity demanded of yen has decreased.