An inferior good is a good whose income elasticity of demand is less than 0
Indicate whether the statement is true or false
TRUE
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The idea that rational employers think at the margin is central to understanding how many units of labor they choose to employ
a. True b. False Indicate whether the statement is true or false
Critics of stabilization policy argue that
a. there is a lag between the time policy is passed and the time policy has an impact on the economy. b. the impact of policy may last longer than the problem it was designed to offset. c. policy can be a source of, instead of a cure for, economic fluctuations. d. All of the above are correct.
A competitive industry consists of 100 firms. The short-run marginal cost curve for each firm is given by MC = 200 + .3Q. The demand curve faced by the industry is given as P = 400 - .1Q. What is the producer surplus for each firm?
What will be an ideal response?
The spot market for foreign exchange is( are):
a. a market that exists only in one place at one time. b. when a person borrows to speculate in the market. c. purchases and sales of currencies for immediate delivery. d. the rate of exchange quoted during the next business day.