What must be true in terms of the income effect, the substitution effect, and the type of good for the good's demand curve to be upward sloping?
What will be an ideal response?
The income effect would have to be larger than the substitution effect, and the good would have to be an inferior good.
You might also like to view...
The market for used cars is shown in the above figure. Buyers cannot tell whether any given car is a lemon. The percent of all cars that are lemons is ?. What value of ? is necessary for all cars to be sold?
What will be an ideal response?
The Federal Deposit Insurance Corporation (FDIC)
a. insures all demand deposit accounts up to $10 million in banks choosing FDIC protection b. was created as a government-owned corporation following the creation of the World Bank and the International Monetary Fund after World War II c. provides insurance to all participating corporations and government agencies such as the Federal Reserve d. creates monetary policy in conjunction with the Federal Reserve Board e. was created to reduce the risk of bank failure and thereby insuring the stability of the banking system
As a knowledgeable investor in 2007, you should have realized that as interest rates fell, bond prices would
A. also fall. B. rise. C. become more volatile, like stock prices. D. fall but not by as much as stock prices.
(Consider This) Governments' main economic concern about low birthrates is that:
A. in a few decades there will not be enough working-age adults to support pension responsibilities to retirees. B. the smaller population makes the economy more vulnerable to foreign takeover. C. a declining population will reduce worker productivity. D. smaller populations are more susceptible to epidemics.