Some people will often remark that the used car market is a counter-cyclical business,meaning that the fortunes of the business tend to move in the opposite direction of the health of the economy

Why might this be true and what conclusion can you make about what kind of a good used cars would be classified as economically speaking?


What they probably mean is that when the economy is moving into a recession people tend to move away from the purchase of new cars and will purchase more used cars instead. Likewise, during an economic boom or expansion customers now have more income and are more motivated to purchase new cars and substitute away from used cars. Essentially the conclusion you can make is that used cars are considered to be an inferior good.

Economics

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Indicate whether the statement is true or false

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The following Phillips curve of would be consistent with the _____ model(s)

a. Keynesian. b. monetarist. c. monetarist and classical. d. classical. e. None of the above

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If there were five firms in an industry each with a 20% market share, what would the Herfindahl-Hirschman Index equal?

a. 80% b. 800 c. 1,600 d. 2,000

Economics

An important policy goal in undeveloped labor markets is

a. lowering interest rates and increasing access to money and loans. b. helping workers to become more connected to the labor market and the economy. c. passing laws to protect worker rights and protect worker safety. d. to maintain inflation at a rate comparable to higher-income countries.

Economics