A downward sloping income-demand curve indicates that the good is a necessity.
Answer the following statement true (T) or false (F)
True
Rationale: To be more precise, it indicates that a good is an inferior good -- but all inferior goods are necessities, and thus the statement is true.
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A common resource is used efficiently if
A) the output is maximized. B) marginal social benefit equals marginal social cost. C) marginal private benefit equals marginal private cost. D) marginal social benefit is maximized.
Which of the following will cause an increase in aggregate demand?
a. Relative price increase of U.S. goods b. Relative price decrease of U.S. goods c. Increase in taxes d. Decrease in income
If demand for new investment goods weakens and firms revise downward their expectations of future sales, the coupling effects of the accelerator and the income multiplier
a. work against each other b. create no loss in the economy as the effects cancel each other out c. create the downward phase of the business cycle d. create the upward phase of the business cycle e. explain why real business cycle theorists believe the economy is unstable and cyclical
The residual supply curve is the ________ the market ________ that is ________ by other demanders at any given price
A) supply; consumes; also consumed. B) quantity; supplies; consumed. C) quantity; supplies; not consumed. D) quantity; demands; consumed.