An inferior good is
a. any good whose demand curve shifts to the left as income rises
b. any good of low quality
c. one that has few substitutes
d. any good produced by inexpensive labor
e. any good that consumers buy less of as its price falls
A
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The above figure shows the PPF for a country that produces computers and computer factories. The nation's production possibilities frontier is PPF0 . At which of the following production points would the economy grow most rapidly?
A) Point A B) Point B C) Point C D) It makes no difference among the three points because they are all production efficient. E) More information is needed to answer the question.
A contractionary monetary policy raises the real interest rate, causing the domestic currency to ________, thereby ________ net exports
A) appreciate; raising B) appreciate; lowering C) depreciate; raising D) depreciate; lowering
The "invisible hand" concept to describe the guiding function of prices was developed by:
A. Milton Friedman. B. Jeremy Bentham. C. Adam Smith. D. David Ricardo.
Refer to the information provided in Figure 7.8 below to answer the question(s) that follow. 
Figure 7.8Refer to Figure 7.8. If the price of capital is $30, then along isocost line AB total cost is
A. $1,200. B. $1,800. C. $2,400. D. indeterminate from this information, as the price of labor is not given.