A normal good is one:
What will be an ideal response?
for which the consumption varies directly with income.
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All of the following are true EXCEPT
a. President Reagan was the first U.S. president to call for the use of economic criteria when evaluating policy b. President Reagan’s Executive Order 12291 required the use of a Regulatory Impact Analysis (RIA) when major regulations were being considered c. During his presidency, Clinton did not issue any executive order to continue Reagan’s commitment to using economic criteria in policy evaluation d. President Obama issued an executive order to support and expand upon President Clinton’s executive order requiring benefits to justify the costs of a significant regulation
If price were $14, there would be a (shortage or surplus) _____ of _____.
Suppose that the market for engagement rings is in equilibrium. Then political unrest in South Africa shuts down the diamond mines there. South Africa is the world's primary supplier of diamonds. What will happen?
A. The supply of engagement rings will increase. B. The equilibrium quantity of engagement rings will decrease. C. The demand for engagement rings will decrease. D. The equilibrium price of engagement rings will decrease.
The investment demand slopes downward and to the right because lower real interest rates:
A. expand consumer borrowing, making investments more profitable. B. boost expected rates of returns on investment. C. enable more investment projects to be undertaken profitably. D. create tax incentives to invest.