A good is classified as inferior if:
a. consumers buy less when the price rises.
b. consumers buy less when income rises.
c. consumers buy less when the price falls.
d. consumers buy more when income rises.
e. better quality goods exist.
b
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When economists study the interactions of different people, the focus of their studies is on
A) inequality of wealth. B) many different individual plans that must be coordinated. C) not enough jobs for everyone who wants one. D) people's excessive attachment to their own interests. E) too many dollars chasing too few goods.
Domestic agricultural subsidies intended to support the nation's farmers would not be considered a trade barrier so would not be disputed internationally
Indicate whether the statement is true or false
Policies to encourage higher personal saving rates include ________
A) lowering income taxes B) lowering sales taxes C) increasing the quantity of money D) raising asset prices E) reducing interest rates
Creative destruction by innovation means
a. destruction of an innovative product once it fails in the market. b. introduction of an innovative product makes older substitute goods obsolete. c. substitute goods make innovative goods less competitive in the market. d. introduction of innovative goods increase the competition in the market