A good for which demand decreases when income decreases is known as a(n) ________ good.
A. normal
B. inferior
C. complementary
D. substitute
Answer: A
You might also like to view...
The measure of production that values output using base-year prices is called
A) underground GDP. B) nominal GDP. C) real GDP. D) value-added GDP.
In 18th century Europe, governments gave guilds legal authority to limit production of goods. How did this authority either obstruct or improve the market mechanism?
A) It obstructed the market mechanism because with one more party having to coordinate activities (the guilds) there were delays in getting the products to consumers. B) It improved the market mechanism because the government's actions provided the correct set of signals to the market so that producers can adjust their output to better meet the needs of consumers. C) It improved the market mechanism by making it more efficient because the guilds were able to quickly identify and rectify any market shortages and surpluses. D) It obstructed the market mechanism because the guild's actions prevented the forces of demand and supply from coordinating the self-interested decisions of producers and consumers.
Fiscal policy encompasses all of the following except
A) expenditures by the government. B) monetary injection by the government. C) taxation by the government. D) borrowing by the government.
For a country to be a price taker in the global market for some good:
A. the quantity it produces and consumes must be very small relative to the total amount of that good bought and sold worldwide. B. the quantity it produces and consumes must be very large relative to the total amount of that good bought and sold worldwide. C. there must be many sellers all supplying a very significant amount to the market. D. there must be many buyers all buying a large amount from the market.