Nick considers macaroni and cheese to be an inferior good. As a result of macaroni and cheese being an inferior good, the
A) substitution effect must be larger in magnitude than the income effect so that less is purchased as the price falls.
B) substitution effect must be smaller in magnitude than the income effect so that less is purchased as the price falls.
C) income effect is positive, so that more is purchased as income increases.
D) income effect is negative, so that less is purchased as income increases.
D
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Why do nations engage in international trade?
What will be an ideal response?
If the central bank buys foreign assets,
A) the domestic monetary base will decline. B) domestic short-term interest rates will decline. C) the foreign-exchange value of the domestic currency will rise. D) its holdings of international reserves will rise.
Between 1860 and 1910, output in manufacturing, mining, and railroad freight hauling
a. expanded more rapidly than the labor force in these sectors. b. grew at about the same rate as the labor force in these sectors. c. grew more slowly than the labor force in these sectors. d. expanded, while the labor force in these sectors declined.
Overfishing and extinction of species arise because of:
a. an abundance of natural resources. b. communist countries. c. the lack of incentive to take care of these species. d. private ownership of these resources. e. a high degree of economic freedom in all countries.