An inferior good is best defined as a product for which the:
A. income elasticity of demand is negative.
B. income elasticity of demand is zero.
C. price elasticity of demand is zero.
D. price elasticity of demand is negative.
Answer: A
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When the Fed ________ the money stock, the money supply curve shifts to the ________ and the interest rate ________, everything else held constant
A) decreases; right; rises B) increases; right; falls C) decreases; left; falls D) increases; left; rises
How do we measure the slope of a linear curve?
Mike recently lost his job as a construction worker. During this unemployment spell, Mike actively searched for work but recently took a job that paid cash "under the table" while he continued to search and collect unemployment payments. Mike would be considered __________ by the Bureau of Labor Statistics but his inclusion would cause the officially reported unemployment rate to __________ the
true unemployment rate. a. an involuntary part-time worker; overestimate b. a discouraged worker; underestimate c. unemployed; underestimate d. unemployed; overestimate e. employed; equal
Critics of government regulation argue that government interference in the marketplace stifles the "animal spirits" of entrepreneurship.
Answer the following statement true (T) or false (F)