Goods whose income elasticities are negative are called
A) normal goods.
B) superior goods.
C) inferior goods.
D) complements.
C
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A policy maker who is concerned that the unemployment rate is too high would ________.
A. use tariffs to reduce imports and increase net exports B. increase the minimum wage C. decrease government spending D. increase taxes
Which of the following is not a characteristic of a monopoly?
a. the seller has market power b. one seller c. free entry and exit d. a product without close substitutes
From 1980 to 1987
a. foreigners were buying more assets from the United States than Americans were buying abroad. The United States was going into debt. b. Americans were buying more assets abroad than foreigners were buying from the United States. The United States was going into debt. c. foreigners were buying more assets from the United States than Americans were buying abroad. The United States was moving into surplus. d. Americans were buying more assets abroad than foreigners were buying from the United States. The United States was moving into surplus.
When there is a recession (a fall in output) and prices are increasing, and this situation is caused by adverse supply shocks, the term economists use to describe it is:
A. aggregate shifts. B. stagnation. C. inflation. D. stagflation.