Giffen goods have positively-sloped demand curves because they are
a. inferior goods with no substitution effect.
b. normal goods with no substitution effect.
c. inferior goods for which the substitution effect outweighs the income effect.
d. inferior goods for which the income effect outweighs the substitution effect.
d
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During the summer you have made the decision to attend summer school, which prevents you from working at your usual summer job in which you normally earn $6,000 for the summer. Your tuition cost is $3,000 and books and supplies cost $1,300
In terms of dollars, the opportunity cost of attending summer school is A) $10,300. B) $6,000. C) $4,300. D) $3,300.
Explain why some amount of ignorance can be rational
What will be an ideal response?
In the simple Keynesian expenditure model, a marginal propensity to consume of .9 leads to an expenditure multiplier of
A) .1. B) .9. C) 9. D) 10.
If a country bans the importation of a particular good, the market equilibrium is shown by the intersection of the foreign demand curve and the domestic supply curve.
Answer the following statement true (T) or false (F)