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.