If the demand for steak increases as income increases, then steak is a(n):
A. normal good.
B. inferior good.
C. substitute good.
D. complementary good.
Answer: A
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According to Douglass North's "market opportunity response" model, surges in land sales in the Old Northwest in the 1810s, 1830s and 1850s were due to
a. improved transportation between the Old Northwest and the Northeast. b. rising prices for corn and wheat. c. the growth of manufacturing in the Great Lakes region. d. large reductions in property tax rates.
Jessica makes photo frames. She spends $5 on the materials for each photo frame. She can create one photo frame in an hour. She earns $10 per hour at a part-time job at the local coffee shop. She can sell a photo frame for $30 each. An economist would calculate the total cost for one photo frame to be
a. $5. b. $10. c. $15. d. $25.
Which of the following is most likely to cause the aggregate supply curve to shift to the right?
A. A one-time tax rebate. B. A decrease in marginal tax rates. C. A decrease in international trade. D. An increase in the money supply.
Keeping a $20 bill in your purse to purchase a movie DVD when it comes out next month means that money functions as a
A) medium of exchange. B) unit of account. C) standard of deferred payment. D) store of value.