Demand for a normal product may shift outwards if ?

A. Price decreases
B. The price of a substitute falls
C. The price of a complement rises
D. Income falls

The law of demand implies that ?

A. As prices rise, demand decrease
B. As prices fall, quantity demanded increase
C. As prices fall demand increases
D. As prices rise, quantity demanded increases

What effect is working when the price of a good falls and consumers tend to buy it instead of other goods ?

A. The ceteris paribus effect
B. The diminishing marginal utility effect.
C. The substitution effect
D. The income effect

Demand curves are derived while holding constant ?

A. Incomes, tastes, and the price of other goods.
B. Income, tastes, and the price of the good.
C. Income and tastes
D. Tastes and the price of other goods

Suppose the demand for good Z goes up when the price of good Y goes down. We can say that goods Z and Y are ?

A. Perfect substitutes
B. Complements
C. Unrelated goods.
D. Substitutes.

Which of the following will NOT cause a shift in the demand curve for compact discs ?

A. A change in wealth
B. A change in the price of compact discs
C. A change in income.
A cHange in the price of pre-recorded cassette tapes

A way of helping depressed regions by having lower wages lower local taxes and lower unemployment benefit has been suggested as ?

A. Market-orientated economists
B. Left-wing theorists
C. Keynesian.
D. New-keynesian

Interventionist policies to restore regional imbalance focus on ?

A. Subsidies to encourage firms that moves
B. Tax concessions for firms that move.
C. Improved infrastructure
D. All of the above

Reaganomics was a radical shift in policy aimed at directly tackling ?

A. The charities economy
B. The demand side of the economy
C. The underground economy
D. The supply side of the country

The success of regional and urban policies has been limited by ?

A. Bureaucracy
B. Bad luck
C. Poor communications
D. The low level of government grants and by the fact that some projects would have gone ahead anyway