If the demand of a good is inversely related to income, it must be
A) a bad good.
B) an inferior good.
C) a normal good.
D) an everyday product.
B
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Which measure of inflation would include consumer goods and capital goods?
A. the Consumer Price Index B. the Retail Trade Survey C. the GDP Price Index D. the Employment Cost Index
If a 10 percent decrease in the price of one good generates a 3 percent increase in the quantity demanded for another good, then the
a. two goods are complementary b. cross elasticity between the two goods is positive c. two goods are substitutes d. price elasticity of demand for the good whose quantity demanded increased must be inelastic e. price elasticity of demand for the good whose quantity demanded increased must be elastic
Market economies produce outcomes that are
A. virtually ideal in all respects. B. inferior to most other systems. C. far from ideal, in some respects. D. virtually indistinguishable from command economies.
If an increase in output is proportionately smaller than the increase in inputs, this is best described as;
(a) Decreasing returns to scale. (b) Increasing returns to scale. (c) Constant returns to scale. (d) Marginal returns to scale.