A normal good is one
a. the average consumer chooses to consume at a normal level.
b. the average consumer chooses to consume over other similar goods.
c. for which an increase in income increases consumption of the good.
d. for which an increase in income decreases consumption of the good.
c
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An outward, parallel shift in the budget line indicates that
a . the consumer's income has risen. b. the consumer's demand for the good on the horizontal axis has risen. c. the price of the good on the horizontal axis has fallen. d. all commodity prices have simultaneously risen.
One of reasons the government may choose to spend would be the:
A. real interest rates increase. B. beliefs about what citizens may need. C. government expected to earn a large return on its spending. D. real interest rates decrease.
If Japan experiences a period of deflation and the United States does not, what will happen in the United States?
A. An increase in aggregate supply B. A decrease in aggregate supply C. A decrease in aggregate demand D. An increase in aggregate demand
Suppose an increase in the price of hamburger from $3 to $4 leads to an increase in quantity supplied from 100 units to 150 units. At the original price, the price elasticity of supply for hamburgers is ________ so supply is ________.
A. 3/2; inelastic B. 2/3; elastic C. 2/3; inelastic D. 3/2; elastic