When people’s income increases, demand for science fiction novels increases. The novels are
a. an inferior good.
b. substitutes.
c. a normal good.
d. regular goods.
c. a normal good.
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The common measure of wealth used in calculating the distribution of wealth includes
A) the amount an individual will not receive during retirement. B) workers' claims on private pension funds. C) financial assets. D) human capital.
The Package Store hires workers to wrap packages. The store sells this service for $5. The marginal revenue product of this store's fifth worker is $50. The marginal product of the fifth worker is
A. 0.01 package. B. 1 package. C. 10 packages. D. indeterminate from this information.
At the optimum, the marginal social benefit from pollution emissions
A. will equal the marginal social cost of pollution emitted. B. will be less than the marginal social cost of pollution emitted. C. will be greater than the marginal social cost of pollution emitted. D. is zero.
If the average price level increases 10 percent per year, and the velocity of money is 2, then the:
A. inflation rate is 10 percent. B. inflation rate is 5 percent. C. inflation rate is 2 percent. D. inflation rate is 20 percent.