If the demand curve for bologna shifts to the right as income falls then bologna is a(n):
A. complementary good.
B. substitute good.
C. normal good.
D. inferior good.
Answer: D
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The total amount of producer surplus in a market is equal to
A) the area between the demand curve and the supply curve below the market price. B) the difference between quantity supplied and quantity demanded. C) the area above the market supply curve. D) the area above the market supply curve and below the market price.
Required reserves are
A) the portion of demand deposits and NOW accounts banks must hold. B) zero on demand deposits. C) zero on NOW accounts. D) imposed on all deposits at commercial banks.
If the price level is fixed, then an increase in government spending will lead to
A) a larger increase in nominal GDP than in real GDP. B) a smaller increase in nominal GDP than in real GDP. C) no increase in either nominal GDP or real GDP. D) an increase in nominal GDP by the same amount as an increase in real GDP.
Consider a market that sells some of its goods as exports. Who does NOT benefit?
A) foreign consumers B) workers in the industry C) domestic consumers D) domestic producers