If a good is normal, then an increase in income will result in
a. an increase in the demand for the good.
b. a decrease in the demand for the good.
c. a movement down and to the right along the demand curve for the good.
d. a movement up and to the left along the demand curve for the good.
Ans: a. an increase in the demand for the good.
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Which type of unemployment is a permanent and healthy phenomenon in a dynamic economy?
A) cyclical B) avoidable C) structural D) frictional E) unavoidable
A financial asset is considered a security if
A) the owner of the security receives dividends and realizes a capital gain when the asset is sold. B) its value increases after it is sold in a primary market. C) it can be sold in a secondary market. D) its value is secure; that is, the owner will not suffer a financial loss when the asset is sold.
Commodities that last less than three years and may be consumed very quickly are called:
A) durable goods B) nondurable goods C) services D) none of the above
If the stock market continues a steady climb upwards, this ____ consumer confidence and wealth, leading to ____ consumption, and ____ aggregate demand
a. increases, decreased, increased b. decreases, decreased, decreased c. increases, increased, increased d. increases, increased, decreased