A good for which demand decreases when income decreases is known as a(n) ________ good.
A. normal
B. inferior
C. complementary
D. substitute
Answer: A
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Inside lags are
A) longer for fiscal policy than for monetary policy. B) the same for fiscal policy and monetary policy. C) more variable for monetary policy than for fiscal policy. D) longer for monetary policy than for fiscal policy.
Which of the following statements is true?
A) When a nation has an absolute advantage over other nations in producing all the goods and services, it cannot gain from trade. B) Absolute advantage relates to production per units of inputs and comparative advantage involves the opportunity cost of producing different goods. C) When a nation has an absolute disadvantage over other nations in producing a good, it cannot gain from trade. D) Absolute advantage involves the opportunity cost of producing different goods and comparative advantage relates to production per units of inputs.
An increased demand for the services of tax accountants
A) may raise their fees but cannot affect their costs. B) may raise their fees by making it more costly for them to provide services to any client. C) will lead to fewer people using the services of tax accountants because higher prices mean a smaller quantity demanded. D) will lower their fees in the long run by producing more tax accountants.
Being first only works
A) if accounting profits are earned in the first year. B) if the entrepreneur has the working capital of a large firm. C) in a winner take all situation. D) all of these choices.