An inferior good or service is any good or service for which an increase in income causes a decrease in demand
a. True
b. False
Indicate whether the statement is true or false
True
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At all points below the current LM curve,
A) the supply of output exceeds output demand. B) the supply of output falls short of output demand. C) the supply of money falls short of money demand. D) the supply of money exceeds money demand.
At the output where MC = ATC = P, the firm
A. should shutdown. B. has no economic profit. C. should raise output. D. is profit maximizing.
The indifference curves for nickels and dimes will be
A. a straight line with negative slope. B. a straight line with positive slope. C. concave. D. L-shaped.
_________ are three broad spending categories of personal consumption when comes to the household
a) Durable goods firm services b) Durable goods non durable goods services