A positive income elasticity of demand for a good
a. means it is a substitute
b. means it is a complement.
c. it is a normal good.
d. it is an inferior good.
c
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Fixed costs of production in the short run
A. are low in proportion to variable costs in the short run. B. are a function of the level of variable costs. C. increase as the firm produces more output. D. cannot be reduced by producing less output.
A private good is
A) a good that is rival and excludable. B) a good that is rival and nonexcludable. C) a good that is nonrival and excludable. D) a good that is nonrival and nonexcludable.
A negative growth rate will cause: a. an inward shift of an economy's production possibilities curve
b. an outward shift of an economy's production possibilities curve. c. a movement from a point inside an economy's production possibilities curve to a point on the curve. d. an economy's production possibilities curve to slope upward.
The larger the expansionary gap, the greater the pressure on what?
a. exchange rate b. real wages c. price level d. interest rates