If butter has an income elasticity equal to 0.75, then butter is an inferior good
a. True
b. False
Indicate whether the statement is true or false
False
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In the above figure, if the price is P1 and the firm produces Q2, it is
A) making an economic profit. B) incurring an economic loss. C) breaking even. D) More information is needed to determine if the firm is earning a positive economic profit, zero economic profit, or is incurring an economic loss.
Which of the following statements is an example of positive economic analysis?
A) The inflation rate is too high. B) The government should worry less about inflation and more about unemployment. C) If the government increases the rate of growth of the money supply, the inflation rate will increase, ceteris paribus. D) The elderly live on a fixed income, so the government has an obligation to keep inflation rates low.
Which of the following is a term for an innovative new product or production technology which disrupts the status quo in a market, leading the innovators to earn more income and profits and the other firms to lose income and profits, unless they can come up with their own innovations?
a. disruptive technological change b. disruptive market change c. disruptive trade change d. disruptive transfer change
Which of the following would you expect to see for borrowers with a high risk of default, compared to borrowers with a low risk of default?
A. A supply curve that is further to the right B. A surplus of loans C. A demand curve that is further to the left D. A higher interest rate