People will buy more of a normal good when their income decreases.
Answer the following statement true (T) or false (F)
False
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In part, microeconomics is concerned with
A) how a business firm decides upon the amount it produces and the price it sets. B) changes in the economy's total output of goods and services over long periods of time. C) factors that explain changes in the unemployment rate over time. D) the Federal Reserve's policy decisions.
Critics of nationwide banking fear
A) an elimination of community banks. B) increased lending to small businesses. C) cutthroat competition. D) banks with economies of scale problems.
Environmental quality is
A. a public good. B. best improved through government’s prohibiting externalities. C. maximized when costs of pollution are external. D. minimized when optimal levels of pollution are produced.
Divya owns a small boutique in a busy neighborhood. She has been thinking of expanding her business hours and hiring a sales associate to work evenings and weekends. She sees on the news that the GDP is down and decides to hold off on expanding her business for the time being. Why?
What will be an ideal response?