If Holly's demand for fast food decreases as her income rises, then
a. fast food is a normal good for her
b. the law of demand must apply
c. fast food is a complementary good
d. fast food is an inferior good for her
e. fast food is a substitute good
D
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Since the mid-1980s, Federal Reserve policies have often been described as attempting
A) accelerated takeoffs. B) sustained growth. C) stalling tactics. D) soft landings.
According to the shutdown rule, a firm should produce no output in the short run if
A) price is below minimum average total cost. B) price is above minimum average total cost. C) total revenues are lower than total fixed costs. D) price is below minimum average variable costs.
Economic models are of limited use since they cannot be tested empirically
a. True b. False Indicate whether the statement is true or false
Lower deductibles for employer-provided health care will tend to shift the ________ curve for medical services to the ________
A) demand; left B) demand; right C) supply; left D) supply; right