Fast food is believed to be an inferior good. This means that
A. the quantity of fast food supplied decreases as income increases.
B. the quantity of fast food consumed will always be high.
C. the income elasticity of demand for fast food is positive.
D. the quantity of fast food consumed decreases as income increases.
Answer: D
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Normal profit is defined as
a. accounting profit b. economic profit c. profit necessary to ensure that opportunity costs are covered d. accounting profit minus economic profit e. economic profit minus accounting profit
At higher interest rates, fewer people or firms will want to borrow. At lower interest rates, fewer people or firms will want to save
a. True b. False Indicate whether the statement is true or false
A firm that produces and sells furniture gets to choose
a. how many workers to hire in both the short run and the long run. b. the size of its factories in the short run but not in the long run. c. which short-run average-total-cost curve to use in both the short tun and the long run. d. All of the above are correct.
The slope of the PPF can be expressed as:
a. the ratio of abundance of capital to labor. b. the preferences of consumers in terms of marginal utility. c. the ratio of the quantities of good 1 and good 2. d. the negative of the ratio of the marginal products of labor in producing each good