In the case of a normal good,
A) demand curves always slope downward.
B) the income effect and substitution effect are in the same direction.
C) the Engel curve slopes upward.
D) All of the above.
D
You might also like to view...
There is no change in total revenue when the demand curve for a good is:
a. unitary elastic. b. perfectly inelastic. c. elastic. d. inelastic. e. perfectly elastic.
From 2009 to 2013, the price level in the U.S. has increased by 8.3 percent. This implies that the price index in 2012 was: a. 108.3. b. 183
c. 100. d. 98.3. e. 92.7.
Which of the following is not a characteristic of a public good?
a. It is scarce. b. It is not diminished in amount as additional people consume the product. c. Its benefits cannot be withheld from anyone. d. It is free. e. It yields widespread benefits.
Some people drop out of the labor force during times of recession:
A. to go back to college, because the opportunity cost is lower during a recession. B. because they cannot find work and give up trying. C. and decide to take early retirement. D. All of these are true.