Apples are a normal good, so if the price of an apple increases from 50¢ to 60¢, the quantity of apples demanded decrease because of
A) the substitution effect only.
B) the income effect only.
C) a change in income.
D) the substitution and income effects.
D
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A tariff is a tax
A) on an exported good. B) on an imported good. C) imposed on all traded goods. D) imposed on people's income. E) imposed on the difference between the value of the goods a firm imports and the value of the goods it exports.
The "law" of diminishing returns
a. is deduced from the basic biochemical relationship of agricultural theory. b. was constructed as the basis of observation during experiments on the impact of fertilizer on output in the 1930s. c. is based on regular observations of input-output relationships over the last two centuries. d. is borrowed from physical laws related to conversion of matter and energy.