Assuming that travel from New York to Los Angeles is a normal good, a decrease in consumer income, other things being equal, will:
a. decrease the quantity demanded of travel to Los Angeles.
b. increase the demand for travel to Los Angeles.
c. decrease the demand for travel to Los Angeles.
d. increase the quantity of travel to Los Angeles demanded.
c
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Which of the following is not a barrier to entry?
A. Patents. B. X-inefficiency. C. Economies of scale. D. Ownership of essential resources.
A $1 increase in government spending on goods and services will have a greater impact on the equilibrium GDP than will a $1 decline in taxes because:
A. government spending is more employment-intensive than is either consumption or investment spending. B. government spending increases the money supply and a tax reduction does not. C. a portion of a tax cut will be saved. D. taxes vary directly with income.