Consider a downward-sloping demand curve. When the price of an inferior good decreases, the income and substitution effects
A) work in the same direction to increase quantity demanded.
B) work in the same direction to decrease quantity demanded.
C) work in opposite directions and quantity demanded increases.
D) work in opposite directions and quantity demanded decreases.
C
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Refer to Scenario 3. The marginal cost of producing the sixth unit of output is:
A) $33.33 (approximate). B) $55. C) $200. D) $250.
Much of the credit for prevention of a financial market meltdown after "Black Monday" (October 19, 1987 ) must be given to the Federal Reserve System and then-chairman
A) Paul Volcker. B) Alan Blinder. C) Arthur Burns. D) Alan Greenspan.
The above figure shows four different markets with changes in either the supply curve or the demand curve. Which graph best illustrates the market for non-dairy coffee creamer after severe weather destroys a large portion of the coffee crop?
A) Graph A B) Graph B C) Graph C D) Graph D
When the Fed is pursuing contractionary monetary policy it will tend to depreciate the value of the dollar and hence increase net exports, other things equal
a. True b. False Indicate whether the statement is true or false