EC 141

Question 3:What effect will each of the following have on the demand for small automobiles such asthe Mini Cooper and Smart car?a. Small automobiles become more fashionable.a.A change in taste will pu sh up the demand. This will cause the demand curvefor small autos to shift right. b. The price of large automobiles rises (with the price of small autos remaining the same).a.A change in substitutes will cause the demand for small automobiles toincrease, causing the demand curve to shift right. c. ...

GDP is the market value of: Economic resources used in the production of annual output in an economy National income distributed to producers, consumers, and investors in an economy Consu mption and investment spending in an economy in a given year All final goods and services produced in an economy in a given year Money spent on the purchase of a new house is included in the GDP as a part of: Personal saving Personal consumption expenditures Investment (WRONG!) The consumption of private fixed ...