If you include in your offerings some inferior goods, the demand for these products will increase:
A. when incomes are high.
B. during bad economic times.
C. during economic booms.
D. All of the statements associated with this question are correct.
Answer: B
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Look at the following data: The structural unemployment rate is 4 percent, the natural unemployment rate is 5 percent, and the cyclical unemployment rate is 3 percent. The frictional unemployment rate is ____________ percent and the actual unemployment rate is __________ percent.
a. 2; 7 b. 2; 8 c. 1; 7 d. 1; 8
Strategic complementarity refers to
a) two trade partners producing goods in which they have the greatest relative efficiency, and sharing the benefits through trade b) the increase in demand for one good when the price of another good falls c) a market failure in which individual decisions are not coordinated d) the relationship between capital and labor during a business cycle e) government subsidies for investment
If the government places a $1.20 tax on each pizza sold
A) consumers will have to pay $1.20 more for each pizza they buy. B) the supply curve will shift left by $1.20. C) the demand curve will shift right by $1.20. D) both the demand curve and the supply curve will shift by 60 cents each.
The opportunity cost of a given investment is the potential earnings forfeited by tying up money in the investment.
Answer the following statement true (T) or false (F)