It Has Been Noted That When the Price of a Good

question 207

Multiple Choice

It has been noted that when the price of a good increases, people purchase less of the good. This is an example of

• A) macroeconomic analysis.
• B) irrational behavior.
• C) normative economic analysis.
• D) positive economic analysis.

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Definitions:

Bicycles

Human-powered, pedal-driven vehicles with two wheels attached to a frame, one behind the other, used for transportation, recreation, or sport.

Production

The process of combining various material inputs and immaterial inputs (plans, know-how) to make something for consumption (the output).

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or taking an action.

Autarky

A national economic policy aimed at self-sufficiency, avoiding the import of foreign goods.