As Jamal's income rises, his demand for pizza does not change. It follows that, for Jamal, pizza is a(n)
A) normal good.
B) inferior good.
C) neutral good.
D) substitute good.
E) complementary good.
C
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Which of the following does NOT shift the U.S. aggregate demand curve?
A) an increase in GDP in Japan B) an increase in the supply of money C) a decrease in taxes D) a decrease in the price level
The "minimum efficient scale" of operation in an industry is defined as:
A) the smallest plant size that can be operated by firms in the industry. B) the scale of operation at which economies of scale are exhausted. C) the smallest number of firms that could effectively meet demand for an industry's output. D) the scale of operation by firms in an industry that is least efficient.
In the signaling theory of education,
a. schooling itself does not lead to more productive workers. b. chance plays more of a role than in the human-capital theory. c. schooling enhances worker productivity. d. compensating differentials do not matter.
Stanley Jevons, an economist in the nineteenth century, noted a high correlation between economic prosperity and sunspots. Based on this observation he developed a "sunspot theory" of how the economy operated. We now know that Jevons
A) committed the ceteris paribus error. B) committed the fallacy of composition. C) was confusing causality. D) showed good reasoning for the nineteenth but not the twentieth century