Refer to Figure 3-7. Assume that the graphs in this figure represent the demand and supply curves for ramen noodles, an inferior good. Which panel describes what happens in this market as a result of an increase in income?
A) Panel (a) B) Panel (b) C) Panel (c) D) Panel (d)
D
You might also like to view...
A group of physicians that provides medical services to members for a fixed annual fee is termed a:
A. fee-for-service plan. B. partnership. C. health management organization. D. health maintenance organization.
The quantity of tickets demanded to the Super Bowl is always greater than the quantity supplied
Which of the following in the best explanation why the National Football League does not raise the price of tickets to the level where the quantity demanded equals the quantity supplied? A) The cost of raising the price and printing new tickets would exceed the revenue the NFL would receive from higher ticket prices. B) Raising the price would reduce the demand for tickets; there would then be a surplus and the game would not sell out. C) The demand for Super Bowl tickets is elastic; raising the price would reduce total revenue. D) The NFL is concerned that raising ticket prices would be considered unfair.
Which of the following is not characteristic of successful microfinance organizations:
a. close, continuous contact between borrower and lender b. teams of borrowers who put pressure on each other to repay on time c. relatively small loans for short-term projects d. numerous levels of approval required to ensure that loans are sound e. all of the above characterize successful microfinance organizations
If the nominal exchange rate rises 5%, domestic inflation is 2%, and foreign inflation is 3%, what is the percent change in the real exchange rate?
A) 8% B) 6% C) 4% D) 2%