When Jamar has an income of $2,000 . he consumes 30 units of good A and 50 units of good B. After Jamar's income decreases to $1,500, he consumes 33 units of good A and 45 units of good B. Which of the following statements is correct?
a. Both goods A and B are normal goods.
b. Both goods A and B are inferior goods.
c. Good A is a normal good, and good B is an inferior good.
d. Good A is an inferior good, and good B is a normal good.
d
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In the above figure, the equilibrium price of a paperback book is $6 per book and the equilibrium quantity is 3 million books. The National Literature Board convinces the government to impose a price ceiling of $3 per book
At this price, the quantity of books supplied to the market will be A) 3 million a month and will equal the quantity demanded. B) less than 3 million a month and will exceed the quantity demanded. C) less than 3 million a month and will be less than the quantity demanded. D) more than 3 million a month and will exceed the quantity demanded.
Refer to Figure 1.7. Which of the following points are unattainable, ceteris paribus?
A. E. B. G. C. N. D. F.
Following the tariff imposed on Chinese tires, some businesspeople correctly argued that the U.S. tariff would result in
A) China retaliating by raising tariffs on some U.S. exports. B) China halting the sale of all products in the United States. C) U.S. firms never being able to meet the demand for U.S.-produced tires. D) the government demanding price cuts from U.S. tire manufacturers.
When calculating the CPI, the Bureau of Labor Statistics
A) makes certain to weight the goods and services equally so that no one product is over-weighted. B) weights the price of all goods and services produced in a year within a country's borders. C) sums the prices of the goods and services in the average urban household consumption basket. D) weights the price of goods and services in the basket relative to the importance of the average urban household budget. E) multiplies by 100 the average price of goods and services in the average urban consumer's basket.