As the economy recovers from a recession, we should expect that
a. demand for inferior goods will fall and demand for normal goods will rise
b. demand for both inferior and normal goods will rise
c. demand for inferior goods will rise and demand for normal goods will fall
d. demand for both inferior and normal goods will fall
e. demand for complements will fall
A
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The principle of decreasing marginal benefit explains why the marginal benefit curve
A) is upward sloping. B) has an infinite slope. C) is vertical. D) is downward sloping. E) is horizontal.
In the above figure, the slope across the arc between a and b is
A) 2/5. B) 1. C) 3/2. D) 5/2.
Which of the following statements is TRUE?
a. Average cost (AC) is irrelevant to extent decisions b. Average cost determines how much you produce c. Marginal cost (MC) is irrelevant to extent decisions d. All of the above
According to the simple circular flow concept, whenever planned investment is greater than planned saving during periods of full employment, there is a tendency for
a. output to rise. b. prices to rise. c. employment to increase. d. government to regulate prices and wages.