If a good has "snob appeal," consumers may purchases less when the price falls

a. True
b. False
Indicate whether the statement is true or false


True

Economics

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If velocity is constant and equal to 5, a $20 billion shift of the LM curve to the right will be produced by a __________ in the money supply

A) $100 billion increase B) $100 billion decrease C) $4 billion increase D) $4 billion decrease

Economics

Suppose we are working with the simplest possible Keynesian-cross multiplier, but with the permanent-income hypothesis figured in. If k = 0.88,

and j = 0.25, the multiplier of a $1 change in government spending goes from ________ in the short run to ________ in the long run. A) 8.33, 1.28 B) 1.28, 8.33 C) 8.33, 4.00 D) 1.13, 4.00 E) 4.54, 8.33

Economics

In ____, each competing firm is determined to sell at a price that is lower than the prices of its rivals, often regardless of whether that price covers the pertinent cost

a. market skimming b. a monopoly c. a price war d. perfect competition

Economics

The distinguishing characteristic of a public good is

A) noncompetitive production. B) durability. C) exclusivity. D) nonrival consumption.

Economics