The demand for normal goods
A. Falls when incomes rise.
B. Rises when incomes rise.
C. Rises when incomes fall.
D. Shifts to the right when incomes fall.
Answer: B
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In the above figure, the economy initially is at point B. Then price level rises by 10. The wealth effect will help
A) move the economy to point A. B) move the economy to point C. C) move the economy to point D. D) keep the economy to point B.
Banks create money whenever they
A) accept a deposit. B) lend excess reserves to a borrower. C) receive monthly payments on their loans. D) receive interest on existing loans.
Which of the following is an economic explanation for the "beauty premium"?
a. Employers pay very attractive women less than average-looking women because they believe them to be less intelligent. b. Employers pay above-average-looking men more than above-average-looking women. c. Employers pay above-average-looking women more than average-looking women because customers prefer to deal with better-looking women. d. Employers pay above-average-looking men more because they signal to the market that they are willing to spend more money on personal grooming, a sign of wealth and stability.
Over time, more and more foreign aid is being channeled through private organizations such as CARE
Indicate whether the statement is true or false