You have found data that indicates that the income elasticity of demand for generic (unbranded) shampoo is -0.7. You should conclude that generic shampoo:
A. has inelastic demand.
B. is below its equilibrium price.
C. is an inferior good.
D. is a normal good.
Answer: C
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From a social standpoint, the immediate effect of discrimination is that society ________ the talents and abilities at its disposal, and this makes everybody ________, on average
A) overuses; richer B) overuses; poorer C) fails to use; richer D) fails to use; poorer
In the recent Global Economic Crisis, the end of cash-out mortgage refinancing caused
A) LM curve to shift to the right. B) LM curve to shift to the left. C) IS curve to shift to the left. D) LM curve to shift to the right.
Describe the circumstances under which a producer of joint products in fixed proportions might not sell all of one of the available joint products at the profit-maximizing level of operations
What will be an ideal response?
If technology improves when a nation is in the intermediate range and only the Aggregate Supply changes, then:
a. Real GDP rises and real GDP remains the same. b. Real GDP remains the same and average price level falls. c. Real GDP remains the same and average price level rises. d. Real GDP rises and average price level falls. e. Real GDP falls and average price level rises.