The impact of a 200 increase in income on quantity demanded would be called an income effect.

The impact of a 200 increase in income on quantity demanded would be called an income effect.
 a. True
  b. False

QUESTION 2

The substitution effect of a price change describes what happens to the shift in demand for a good when its price changes.
 a. True
  b. False

QUESTION 3

A demand curve shows how quantity demanded changes as the price changes. It implies that
 a. only a change in price can shift a demand curve
  b. everything else that affects demand is assumed to be constant
  c. quantity demanded is unrelated to price
  d. economists are concerned only with money
  e. it is impossible to show how anything but price affects demand

QUESTION 4

The demand for a product is the amount that
 a. buyers purchase in the market
  b. buyers are willing to purchase at a given price
  c. sellers are willing to sell at a particular price
  d. buyers are willing and able to purchase at alternative prices
  e. buyers are able to purchase at a specific price

QUESTION 5

Consider a system in which a person earning 10,000 pays 1,000 in taxes, a person earning 25,000 pays 1,000 in taxes and a person earning 60,000 pays 1,000 in taxes. What type of tax is this?
 a. progressive
  b. proportional
  c. regressive
  d. transgressive
  e. unfair