Examlex
In March a factory used new technology to produce its output. Then in August a fire destroys half the factory. The new technology shifted the factory's PPF ________ and the fire shifted it ________.
Income Effect
The change in an individual's consumption resulting from a change in their income.
Normal Good
A good for which demand increases as the income of the consumer increases, showing a positive relationship between income and demand.
Income Effect
The impact of income fluctuations on an individual or an economy on the quantity of goods or services that is demanded.
Price Decreases
A reduction in the cost at which goods and services are sold, making them more affordable to consumers.
Q85: By definition, an inferior good is a<br>A)
Q87: A point inside a production possibilities frontier<br>A)
Q211: We measure the marginal _ of a
Q250: The term "direct relationship" means the same
Q269: Macroeconomics is the study of aggregate variables
Q294: In the figure above, suppose that Mac
Q297: If the marginal benefit of a good
Q307: The demand curve for a normal good
Q352: As a curve approaches a maximum point,
Q391: In the above figure, if 4000 bicycles