Based Figure 4.2, clothing is:
A) a normal good.
B) an inferior good, but not a Giffen good.
C) a Giffen good.
D) none of the above
A
You might also like to view...
The concepts of comparative advantage, specialization, and trade form a compelling argument in favor of:
A. free trade. B. protectionism. C. self-sufficiency. D. only exporting goods and not importing goods.
An employer can't legally pay an employee less than $7.25 per hour, which is the federal minimum wage in 2018. Why does this lead to wage stickiness?
An industry is in long-run competitive equilibrium. The price of a substitute good increases.
A. New firms will enter the market. B. Firms will begin earning economic profit. C. The product price will rise. D. a and b E. all of the above
The natural rate of unemployment consists of
A. only seasonal unemployment. B. unemployment associated with high inflation. C. only structural unemployment. D. structural and frictional unemployment.