A good is said to be "inferior" if:
A. it is of low quality.
B. consumers buy less of it at a high price.
C. it has a negative income elasticity of demand.
D. it has many substitutes.
Answer: C
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Refer to the scenario above. Which country has the lowest income per capita?
A) Ritzland B) Techland C) Eduland D) Neoland
Remittances to foreign countries from legal and illegal residents of the U.S. are examples of ________
A) factor payments B) exports C) imports D) transfer payments There are two countries - Earthland and Plutoland - who trade only with each other. Residents in Earthland purchased buildings worth $10 billion in Plutoland during a certain year. None of the other transactions between the two countries during that year involved purchase or sale of assets.
In their surveys of consumers, Daniel Kahneman, Jack Knetsch and Richard Thaler found that
A) most people considered an increase in price by firms following an increase in their costs to be fair but believed it was unfair for firms to raise their prices because of an increase in demand. B) most people considered it unfair for firms to raise their prices because of an increase in their costs, but fair to raise their prices after an increase in demand. C) most people believed that low-income people were hurt most by increases in prices. D) most people considered any increase in price to be unfair as it led to an increase in profits.
Corporate profits are
A) taxed at too low a rate. B) taxed only when a stockholder sells his or her shares of stock. C) taxed twice—once by the corporate tax system, and again by personal tax system when they are paid to stockholders as dividends. D) taxed three times—once by the corporate tax system, again by the personal tax system, and again as capital gains.