A normal good is one for which
A. demand increases as income increases.
B. the demand curve is horizontal.
C. demand decreases as the price of a substitute increases.
D. demand increases as income decreases.
Answer: A
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To accomplish its purpose a linear profit-sharing contract must
a. induce the employee to moonlight b. communicate a code of conduct that will be monitored and enforced c. meet either the participation or the incentive compatibility constraint d. establish a separating equilibrium e. not realign incentives
The number of voting members on the Federal Open Market Committee is:
A. 12. B. 8. C. 7. D. 19.
When a foreigner buys shares in a U.S. company, the transaction
A. is registered as a debit in the capital account, and it increases private U.S. assets abroad. B. is registered as a credit in the capital account, and it decreases foreign private assets in the United States. C. is registered as a debit in the current account, and it decreases private U.S. assets abroad. D. is registered as a credit in the capital account, and it increases foreign private assets in the United States.
Today, bank runs are not a major problem for the U.S. banking system because
a. bank runs are now illegal. b. banks now hold 100 percent of their deposits in reserve. c. banks are now all government-operated. d. the federal government now guarantees the safety of deposits at most banks.