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Questions and Answers
What characterizes an endogenous demand shift?
What characterizes an endogenous demand shift?
- Change in income
- People wanting to buy more even when price stays unchanged
- Change in price of a complement
- Change in quantity demanded in response to a change in price (correct)
Which principle states that everyone does best when each person concentrates on activities with the lowest opportunity cost?
Which principle states that everyone does best when each person concentrates on activities with the lowest opportunity cost?
- Principle of Comparative Advantage (correct)
- Principle of Increasing Opportunity Cost
- Low-Hanging-Fruit Principle
- Principle of Equilibrium
In the context of demand shifts, what does an exogenous demand shift involve?
In the context of demand shifts, what does an exogenous demand shift involve?
- Change in price of a complement
- People wanting to buy more even when price stays unchanged (correct)
- Change in quantity demanded in response to a change in price
- Change in income
What is the key characteristic of a rising supply curve?
What is the key characteristic of a rising supply curve?
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Which factor does NOT lead to a change in demand, according to the text?
Which factor does NOT lead to a change in demand, according to the text?
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What concept does the 'Low-Hanging-Fruit Principle' represent?
What concept does the 'Low-Hanging-Fruit Principle' represent?
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In which scenario would both equilibrium price and quantity increase?
In which scenario would both equilibrium price and quantity increase?
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