If a decrease in income leads to a decrease in the demand for ice cream, then ice cream is
A) a normal good.
B) a neutral good.
C) a complement.
D) a necessity.
Answer: A
You might also like to view...
During 1999, the NASDAQ increased
A. 4%. B. 8%. C. 84%. D. 84 fold.
Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if the Federal Reserve does not use monetary policy. If the Fed uses monetary policy successfully to keep real GDP at its potential level in 2017, which of the following will be higher than if the Fed had taken no action?
A) Real GDP and then inflation rate B) real GDP and the unemployment rate C) real GDP and potential GDP D) potential GDP and the inflation rate
Economists differ in their views of the role of the government in promoting economic growth. At the very least, the government should
a. lend support to the invisible hand by maintaining property rights and political stability. b. limit foreign investment to industries that don't already exist in the country. c. impose trade restrictions to protect the interests of domestic producers and consumers. d. subsidize key industries.
Government transfer payments are income earned by individuals who work for the federal government.
Answer the following statement true (T) or false (F)