A manager can determine if her product is viewed as a normal good or an inferior good by considering
A) price elasticity.
B) cross elasticity.
C) income elasticity.
D) advertising elasticity.
C
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In the long run, if the Fed decreases the rate at which it increases the money supply,
a. inflation and unemployment will be higher. b. inflation will be higher and unemployment will be lower. c. inflation will be lower and unemployment will be higher. d. None of the above is correct.
Government purchases in national income accounts would include expenditures for payments of:
a. Salaries for current U.S. military officers b. Public assistance for welfare recipients c. Social Security checks to retirees d. Public assistance for military veterans
The cost of lobbying for an import quota in a perfectly competitive market
A) increases the welfare loss of the quota. B) decreases the deadweight loss of the quota. C) shifts the supply curve of the good to the left. D) increases the consumer surplus.
The Great Recession of 2007-2009 altered the prior behavior of consumers in the economy by:
A. Shifting the consumption schedule up B. Shifting the consumption schedule down C. Shifting the saving schedule down D. Moving the economy down along a stable consumption schedule