If a decrease in income leads to a decrease in the demand for mac and cheese, then mac and cheese is
A) a normal good.
B) a neutral good.
C) a complement.
D) a necessity.
Answer: A
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Tenth National Bank holds $235,000,000 in checkable deposits and $25,500,000 in reserves. With a required reserve ratio of 10 percent, how much in excess reserves is Tenth National holding?
A) $20,000,000 B) $2,000,000 C) $220,500,000 D) $18,900,000
Critics of advertising sometimes argue that the overall effect of advertising is to make people believe that possessing lots of material goods is the only route to happiness. These critics also believe that this is a misleading view of happiness. Hence, these critics:
A. worry that consumers' choices have positive externalities. B. worry that the resulting increase in consumption increases total utility. C. reject the idea that all is well if the economy produces what people demand. D. believe that distributional issues are the main problem with any economy.
A production possibilities curve indicates the
A. Combinations of goods and services an economy is actually producing. B. Maximum combinations of goods and services an economy can produce given its available resources and technology. C. Average combinations of goods and services an economy can produce given its available resources and technology. D. Maximum combinations of goods and services an economy can produce given unlimited resources.
________ post-World War II ________ have been preceded by increases in inflation.
A. Few; recessions B. Many; expansions C. Many; recessions D. All; expansions