An increase in the price of product X causes a decrease in the quantity demanded for product X. One basic explanation for this is:
A. The law of increasing opportunity cost
B. The price-elasticity effect
C. The law of supply
D. The law of diminishing marginal utility
D. The law of diminishing marginal utility
Economics
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If a tax is economical,
a. its cost of collection is small relative to the revenue collected. b. it has an economic impact on households. c. it creates no economic distortions. d. its revenues are used to finance productive investments.
Economics
The value of intermediate goods is excluded from the measurement of GDP in order to:
A. adjust for inflation. B. index economic activity. C. avoid double counting. D. measure GDP in constant prices.
Economics