If good A is an inferior good, an increase in income leads to:
A. a decrease in the demand for good B.
B. no change in the quantity demanded of good A.
C. a decrease in the demand for good A.
D. an increase in the demand for good A.
Answer: C
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Juanita goes to the Hardware Emporium to buy a new circular saw. She is willing to pay $120 for a new saw, but buys one on sale for $85. Juanita's consumer surplus from the purchase is
A) $35. B) $85. C) $120. D) $205.
Which of the following could decrease unemployment and inflation simultaneously?
A) a decrease in oil prices B) contractionary monetary policy C) an increase in the real wage D) expansionary monetary policy
Excise taxes are
a. proportional since everyone pays the same tax rate b. progressive since richer people buy more things c. regressive since they represent a greater percent of poor people's incomes d. proportional taxes since everyone has the same tax bill e. progressive since richer people have higher tax bills
Between 1986 and 1998 the De Beers company controlled the world diamond market. De Beers and its affiliated association of producers restricted diamond sales to maximize profits. De Beers and its association was "the only game in town" and had what is
A) a cartel. B) a duopoly. C) monopolistic competitor. D) perfect competitor.