Of the collection of supply and demand diagrams in Figure 2.2, which one shows the result of a decrease in income if a good is considered inferior?
A. Figure 1
B. Figure 2
C. Figure 3
D. Figure 4
Answer: A
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Which of the following is a characteristic of an institution?
A) The institutions of a nation are permanent and cannot be changed over time. B) Institutions place constraints on the behavior of economic agents. C) Institutions are determined by individual opinions without considering the government's preference. D) Institutions have very little influence on a nation's economic prosperity.
According to human capital theory, all of the following help make workers more productive EXCEPT
A) health and fitness. B) increased unemployment benefits. C) skills. D) education.
Which of the following are included in the supply of loanable funds?
I. private saving II. government budget surplus III. international borrowing A) I, II and III B) I and III C) II and III D) I and II
If there are no profits in competitive equilibrium, why do firms produce? How can they stay in business?
What will be an ideal response?