Question

Consider the following​ statements, based on a positive economic analysis that assumes that all other things remain constant. For​ each, list one other thing that might change and thus offset the outcome stated.
Part 2
a. Increased demand for laptop computers will drive up their price.
A.
A decrease in the supply of laptop computers.
B.
An improvement in computer manufacturing technology.
C.
An increase in consumer income.

Answer 1

wrong answer

Answer 2

b. Falling gasoline prices will result in additional vacation travel.
A.
Consumer incomes increase.
B.
The airlines engage in a price war that leads to lower airfares.
C.
The economy enters a recession with increased unemployment.

Answer 3

No, C is the answer

Answer 4

A.
Lower interest rates lead to a boom in housing construction.
B.
The foreign exchange value of the dollar increases causing domestic exports to decline.
C.
Congress passes a huge appropriations bill leading to increased government spending.

Answer 5

c. A reduction of income tax rates will result in more people working.
A.
Lower interest rates lead to a boom in housing construction.
B.
The foreign exchange value of the dollar increases causing domestic exports to decline.
C.
Congress passes a huge appropriations bill leading to increased government spending.

Answer 6

A. An increase in the supply of laptop computers.

Answer 7

A. An increase in the supply of laptop computers from manufacturers due to increased demand.

Answer 8

B. The airlines engage in a price war that leads to lower airfares

Answer 9

C. The economy enters a recession with increased unemployment.

Answer 10

A. Increased government regulations on housing construction.
B. The foreign exchange value of the dollar decreases, causing domestic exports to increase.
C. Congress passes a budget cut bill leading to decreased government spending.

Answer 11

B. The foreign exchange value of the dollar decreases, causing domestic exports to increase.