Economists distinguish between normal and inferior goods using
a. price elasticity of demand
b. price elasticity of supply
c. income elasticity of demand
d. cross-price elasticity of demand
e. tax incidence
C
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If the nominal interest rate is 7 percent and the rate of inflation is 3 percent, then the real interest rate is
a. 7 percent. b. 4 percent. c. 3 percent. d. 10 percent.
International dumping occurs when:
a. monopolistic firms charge the same price in domestic and foreign markets. b. monopolistic firms charge a higher price in the domestic market and a lower price in the foreign market. c. monopolistic firms charge a lower price in the domestic market and a higher price in the foreign market. d. domestic monopolistic firms relocate operations abroad.
Subprime mortgages were granted with low or negligible down payments to the borrowers of questionable credit standing who could barely afford their monthly payments.
Answer the following statement true (T) or false (F)
If there are diseconomies of scale within a given range of output, which of following is (are) TRUE?
A) The short-run average cost curve must be upward sloping within that range of output. B) The long-run average cost curve must be upward sloping within that range of output. C) Long-run average cost must equal short-run average cost. D) All of the above.