An inferior good is ordinary:
a. always.
b. if the substitution effect exceeds the income effect.
c. if the income effect exceeds the substitution effect.
d. never.
b. if the substitution effect exceeds the income effect.
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The fundamental force that drives international trade is
A) absolute advantage. B) importation duties and tariffs. C) export licenses. D) comparative advantage.
Other things being constant, the only way to move along a given supply curve for a product is for
A) the product's relative price to change. B) the future relative price of related goods to change. C) the number of sellers to change. D) technological changes to occur.
Market prices
A) are limited in their information content. B) contain all available information. C) contain only past information. D) none of these choices.
A voter will tend to be more informed if the issue in question
A) affects everyone very little. B) is complicated and difficult to understand. C) has an intense and a direct effect on the voter. D) is of special interest to a small group to which the voter does not belong.