If Portuguese wines are an inferior good, higher incomes will cause:
A. an increase in the demand for Portuguese wines.
B. a decrease in the quantity demanded for Portuguese wines.
C. a decrease in the demand for Portuguese wines.
D. an increase in the quantity demanded for Portuguese wines.
Answer: C
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What is the reason that all economic issues and problems occur?
A) All nations use some form of money to buy and sell goods and services. B) People seek only their own self-interest. C) Powerful governments are able to control production and consumption. D) Human wants exceed the resources available to satisfy them. E) Humans are always wasteful and inefficient in production and consumption.
Distinguish between investment goods and consumption goods. If you buy a car, is it investment or consumption? What if IBM buys a car? Are inventories a consumption or investment good?
What will be an ideal response?
Which of the following is not a necessary condition for price discrimination? a. The firm must be a price maker
b. The firm must be able to distinguish between customers. c. The firm must be able to prevent resale of a product between customers. d. The firm must be able to produce homogeneous products. e. The firm must have a downward-sloping demand curve.
The value of the monetary multiplier is:
A. 1/interest rate. B. 1/marginal propensity to consume. C. 1/Required reserve ratio. D. 1/Excess reserves.