If potatoes are inferior goods, which of the following will increase the demand for potatoes?
a. Increase in the price of a complement
b. Decrease in income
c. Decrease in the price of a substitute
d. Increase in income
b
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Refer to Figure 8.1. At 67 units of output, profit is
A) maximized and zero. B) maximized and negative. C) maximized and positive. D) not maximized, and zero. E) not maximized, and negative.
Status-quo bias is:
A. a type of mental barrier to saving. B. when people actively make decisions to change something, even if it is fairly difficult to do so. C. not overcome in the SMarT program because saving is the default option. D. when people have a negative view on the status quo.
The nominal rate of interest is any rate of interest below 3 percent
a. True b. False Indicate whether the statement is true or false
An outward shift in the consumer demand for wheat will
A. raise the price of wheat and shift out the marginal revenue product of labor producing wheat. B. lead to more capital and less labor used in producing wheat. C. raise the price of wheat and shift inward the marginal revenue product of labor producing wheat. D. lead to downward pressure on the wages of those producing wheat.