Consider a downward-sloping demand curve. When the price of an inferior good increases, the income and substitution effects
A) work in the same direction to increase quantity demanded.
B) work in the same direction to decrease quantity demanded.
C) work in opposite directions and quantity demanded increases.
D) work in opposite directions and quantity demanded decreases.
D
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Are restaurant coupons a form of price discrimination? Why or why not?
What will be an ideal response?
The occurrence of the Great Depression offered evidence that supported
a. the classical theory of economics b. the need for the government to practice the policy of laissez faire c. the need for the government to control prices d. Congress to take action to stop rising prices e. the Keynesian idea that the government needed to guide the economy
Which country most recently experienced hyperinflation?
a. Germany b. Zimbabwe c. Chile d. all of the above
The fractional reserve system of banking evolved because
A. goldsmiths did not have safes large enough to hold all their gold deposits. B. there was always a dire need for additional money. C. goldsmiths knew that on any given day, only a few depositors would come to claim their deposits. D. goldsmiths knew that they would not be prosecuted for lending out money they did not have.