If an increase in income results in a decrease in the quantity demanded for a product, the product is ________, and the value of the income elasticity of demand is ________.
A. a normal good; positive
B. a normal good, negative
C. an inferior good; positive
D. an inferior good; negative
Answer: D
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Walton and Rockoff contend that the likelihood of a Great Depression happening again is _______ because (among other reasons) _______
a. substantial, our continued dependence on a highly volatile stock market b. substantial, of our reliance on a fractional reserve banking system c. remote, policymakers are unlikely to repeat the mistakes of the 1930s d. remote, industry now makes up a much larger share of GNP than it did in the 1930s
What would be the profits for Mattie's Dairy in equilibrium if Irene does enter the market?
a. 5 million loss b. 5 million c. 10 million d. 20 million
The short-run supply curve for a firm in a perfectly competitive market is
a. horizontal. b. likely to slope downward. c. determined by forces external to the firm. d. the portion of its marginal cost curve that lies above its average variable cost.
When the government sets a maximum price that can be charged for a good or service, it creates
A) a price support. B) a price floor. C) a white market. D) a price ceiling.