The difference between normal and inferior goods is that
a. an increase in price will shift the demand curve for a normal good rightward and the demand curve for an inferior good leftward.
b. if the price of a normal good increases, individuals who buy it are poorer; for inferior goods, the opposite is true.
c. an inferior good is something that will not be demanded until quantities of the normal good have been exhausted.
d. an increase in income will shift the demand curve for a normal good rightward and the demand curve for an inferior good leftward.
D
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In the 1980s, the USA and the USSR negotiated a reduction in nuclear arms; this is an example of a
A) non-cooperative equilibrium. B) cooperative outcome that may not be a Nash equilibrium. C) cooperative outcome that was a Nash equilibrium. D) sub-game perfect equilibrium.
Why is information sometimes considered as a good?
The real balance effect works through a change in the value of
A) monetary assets in response to changes in the unemployment rate. B) nonmonetary assets in response to changes in the unemployment rate. C) monetary assets in response to changes in the price level. D) nonmonetary assets in response to changes in the price level.
In the 1990s, what reduced the barriers to entry in the local telephone market?
(A) The end of a twenty-year patent on telephone technology. (B) The deregulation of the local telephone industry. (C) The rising popularity of cellular phones. (D) The licensing of new, smaller phone companies.