If a decrease in income leads to an increase in the demand for sardines, then sardines are
A) an inferior good.
B) a neutral good.
C) a necessity.
D) a normal good.
Answer: A
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Most business people calculate marginal cost and marginal revenue to decide how much to produce.
Answer the following statement true (T) or false (F)
Marginal revenue is equal to:
A. the change in total revenue associated with a change in quantity. B. the change in total profits associated with a change in quantity. C. total revenue divided by its output. D. marginal cost.
Composite error is the error that occurs due to _____.
A. the incorrect measurement of explanatory variables B. the inclusion of too many explanatory variables in the model C. correlation between the independent variables D. unobserved factors affecting a dependent variable
The present aim standard of rationality accommodates a much ________ range of observed behavior than traditional economic models, but has been criticized because the model is too ________.
A. broader; flexible B. narrower; inflexible C. broader; inflexible D. narrower; flexible