Good A is a normal good. The demand curve for good A:
A) slopes downward.
B) usually slopes downward, but could slope upward.
C) slopes upward.
D) usually slopes upward, but could slope downward.
A
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The income effect explains why there is an inverse relationship between the price of a product and the quantity of the product demanded
Indicate whether the statement is true or false
A learning curve relates ________ to ________ and is a case of ________ returns
A) unit cost; cumulative production; dynamic increasing returns B) output per time period; long-run marginal cost; dynamic increasing returns C) unit cost; cumulative production; dynamic decreasing returns D) output per time period; long-run marginal cost; dynamic decreasing returns E) labor productivity; education; increasing marginal returns
Explain what may occur when a buyer and a seller have unequal amounts of limited information. Describe two different types of problems that may arise when asymmetric information exists
What will be an ideal response?
According to the critics of Keynesian economics, the rapid increase in government spending and large budget deficits in response to the recession of 2008-2009 would
a. slow the recovery process and result in weak long-term growth of real GDP. b. speed the recovery process and provide the foundation for strong long-term growth of real GDP. c. stimulate a more rapid recovery, but cause the economy to fall back into a recession in the near future. d. slow the recovery process, but provide a foundation for rapid long-term growth of real GDP.