A good is said to be "normal" if:
A. it is of high quality.
B. consumers buy more of it at a high price.
C. it has few substitutes.
D. it has a positive income elasticity of demand.
Answer: D
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Many smaller economies of the world have learned that if they do not participate actively in world _________, they will not thrive economically.
a. trade b. politics c. wars d. media
The combined effects of a fiscal contraction and a monetary expansion are
a. higher real interest rates. b. exchange rate depreciation. c. increased current account deficit. d. All of the above are correct.
Which statement is true?
A. American industry is very competitive. B. There is no competition in American industry. C. In order to have competition you need to have many firms in an industry. D. The electrical and natural gas industries are good examples of competition at work.
Suppose that the price of butter is $3 per pound and the price of margarine is $2 per pound. If the price of butter rises to $3.90 and the price of margarine rises to $2.20, then the absolute price of butter has _______________ and the relative price of butter has _______________
a. risen; fallen b. fallen; risen c. risen; risen d. fallen; fallen