If fast food is an inferior good then:
A. the demand for fast food will fall as income falls.
B. the demand for fast food will fall as income rises.
C. the demand for fast food will fall as the price of fast food rises.
D. the quantity of fast food demanded will rise as the price of fast food rises.
Answer: B
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Dell Computers decides to produce PCs and sell them directly over the Internet and via Best Buy. This is an example of
A) incentives. B) a microeconomic decision. C) a macroeconomic decision. D) scarcity.
What does the productivity of an input measure?
What will be an ideal response?
An increase in domestic output would cause a ________ in net exports and a ________ in the exchange rate
A) rise; rise B) rise; fall C) fall; rise D) fall; fall
Answer the following questions true (T) or false (F)
1. An increase in population shifts the production possibilities frontier inwards over time. 2. If additional units of a good could be produced at a constant opportunity cost, the production possibilities frontier would be linear. 3. On a production possibilities frontier, opportunity cost is represented by the slope of the production possibilities frontier.