Explain the difference between a normal good and an inferior good
What will be an ideal response?
A normal good is something for which the demand increases when income rises and the demand decreases when income falls. An inferior good is something for which the demand decreases when income rises and the demand increases when income falls.
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Based on the 1997 Crisis and your own experience, what are the main weaknesses of the East Asian economies?
What will be an ideal response?
Which one of the following countries was the "spark" that ignited the 2009 euro crisis?
A) China B) Greece C) England D) Spain E) Germany
The speculative motive for holding money is closely tied to what function of money?
A) store of wealth B) unit of account C) medium of exchange D) standard of deferred payment
For a borrower in a (c,c') graph, the optimal consumption bundle is
A) to the left of the endowment point. B) to the right of the endowment point. C) on the endowment point. D) dependent on other factors.