In economic terminology, an inferior good is a good
A) that no one will purchase.
B) that doesn't work properly.
C) that has no monetary value.
D) for which demand increases as income decreases.
D
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If the manager of a nonprofit enterprise sets prices below market clearing levels, she
A) increases the net revenue of the enterprise. B) provides herself with control over a valuable good. C) reduces her personal popularity. D) produces all of the above consequences.
Profits can be thought of as
a. the return to enterprise. b. the reward for taking a risk and winning. c. what is left over after all wages, rent, and interest have been paid. d. All of these.
Electricity accounts for almost 20% of the cost of making steel. A 10% increase in electricity prices results in steel firms decreasing production and thereby demanding 5% less electricity
Over many years, technological innovations can change the way steel firms make steel and reduce the industry's energy requirements. This suggests that the steel industry's short-run elasticity of demand for electricity is probably A) less than one in absolute terms in the short run. B) less than its long-run elasticity of demand for electricity. C) Both A and B above. D) Neither A nor B above.
The SRAS is ____; the LRAS is ____
a. upward sloping; upward sloping b. upward sloping; vertical c. vertical; upward sloping d. vertical; vertical