A normal good is a good whose quantity demanded
a. rises when its price falls.
b. falls when the price of a related good falls.
c. falls when the consumer's total utility rises.
d. rises when the consumer's real income increases.
d
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An individual who pays for personal auto repair has incurred a
A) social cost. B) private cost. C) negative externality. D) positive externality.
The liquidity effect is the
A) decrease in the interest rate due to an increase in the supply of loanable funds. B) increase in the interest rate due to an increase in national income. C) increase in the interest rate due to a higher expected inflation rate. D) increase in the interest rate due to an increase in the price level.
The cash price at your local elevator is $3.60/bu for corn. The relevant (nearby) futures contract for corn is the December contract and it is valued today at $3.50/bu. The "basis" for this location (market) is:
a. $0.50/bu b. -$0.50/bu c. $0.10/bu d. -$0.10/bu
The law of demand states that other things equal:
What will be an ideal response?