As the economy recovers from a recession, we should expect that demand for:
A. inferior goods will fall and demand for normal goods will rise.
B. all goods will rise.
C. inferior goods will rise and demand for non-inferior goods will fall.
D. all goods will fall.
Answer: A
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The figure above shows the price of a DVD player from 1996 to 2000. a. What type of graph is illustrated above? b. What is the trend in the price of a DVD player?
What will be an ideal response?
Moving down a straight-line demand curve, the absolute price elasticity of demand
A) increases. B) is constant. C) decreases. D) varies in uncertain ways.
Minimum wage laws usually
a. increase the number of unskilled workers who are employed. b. benefit all unskilled workers. c. raise the wages paid to unskilled workers who are employed. d. All of the above are correct.
Other things being constant, countries with higher rates of saving
a. will have smaller GDPs than countries with lower rates of saving. b. will have higher rates of investment, but slower growth. c. will have higher rates of investment and growth. d. will be operating at less than full employment and potential output.