If a good is inferior and income decreases, then
A. the supply curve will shift to the left.
B. the supply curve will shift to the right.
C. the demand curve will shift to the left.
D. the demand curve will shift to the right.
Answer: D
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The CPI overestimates inflation because
a. it often ignores the invention of new goods. b. it always includes discount stores. c. it allows substitution from more expensive goods to cheaper goods. d. all of the above.
For quasi-experiments,
A) there is a particularly important potential threat to internal validity, namely whether the "as if" randomization in fact can be treated reliably as true randomization. B) there are the same threats to internal validity as for true randomized controlled experiments, without modifications. C) there is little threat to external validity, since the populations are typically already different. D) OLS estimation should not be used.
Consider a society consisting of just a farmer and a tailor. The farmer has 10 units of food but no clothing. The tailor has 20 units of clothing but no food. Suppose each has the utility function U = F ? C. Derive the contract curve
What will be an ideal response?
A decrease in net taxes at a given price level leads to
A) no change in aggregate demand. B) an increase in aggregate demand. C) a decrease in aggregate demand. D) a decrease in aggregate supply.