Refer to Figure 5.7. Which diagram best represents an income-consumption curve where soup is a normal good?





A. A



B. B



C. C



D. D


C. C

Economics

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When a business is set up as a sole proprietorship, the owner of the business faces limited liability

Indicate whether the statement is true or false

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If ______ equilibrium output _______, the price level rises.

a) actual; is below potential GDP b) potential; is equal to actual GDP c) potential; exceeds actual GDP d) actual; exceeds potential GDP

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Which of the following will increase labor? productivity?

What will be an ideal response?

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A surplus exists when there is excess demand in a market.

Answer the following statement true (T) or false (F)

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