Good X is an inferior good if a decrease in income leads to
A. an increase in the supply of good X.
B. a decrease in the demand for good X.
C. a decrease in the supply of good X.
D. an increase in the demand for good X.
Answer: D
You might also like to view...
The lower the amount of unemployment benefits citizens receive, the
A) higher the wage people must be offered before they accept a job. B) the longer people search for jobs. C) higher the opportunity cost of job search. D) the higher the natural unemployment rate. E) lower the opportunity cost of job search.
Which of the following will most likely cause movement along the consumption function?
A. A change in disposable income B. A change in interest rates C. A change in tastes D. A change in consumers’ expectations
Which one of the following statements describes a disadvantage of operating a sole? proprietorship?
A. Sole proprietorships have fewer financial resources and fewer ways to get additional funds from lenders or investors. B. Sole proprietors are required to get approval from a business? partner, boss, or board of directors to change any aspect of their business strategy or tactics. C. Sole proprietors have less privacy and generally are required to report everything to others in the business. D. A sole proprietorship is difficult to establish and requires far more paperwork than do other structures. E. Income tax is a very complex matter for sole proprietorships compared with other forms.
Economists use the phrase ceteris paribus to express the assumption
A. "everything affects everything else." B. "there is no such thing as a free lunch." C. "all else equal." D. "scarcity is a fact of life."