When There Is a Change in Purchasing Power as a Result

question 67

Multiple Choice

When there is a change in purchasing power as a result of a change in the price of a good,economists call it

• A) the real-income effect.
• B) the substitution effect.
• C) marginal utility.
• D) diminishing marginal utility.
• E) the consumer optimum.

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Definitions:

Manifest Destiny

A 19th-century doctrine or belief that the expansion of the US throughout the American continents was both justified and inevitable.

John O'Sullivan

John O'Sullivan was a journalist and editor who coined the term "Manifest Destiny" to promote the belief that the United States was destined to expand across the North American continent.

Divinely Appointed Mission

A task or purpose believed to be assigned by a divine power, often invoking a sense of duty, destiny, or moral calling.

Telegraph Wire

A medium used historically for transmitting telegraphic messages through electrical signals over long distances.