Which of the following must be true if good X is a normal good and income increases?
a. The demand for X will increase, and thus the price and quantity sold and bought will decrease
b. The demand for X will decrease, and thus the price and quantity sold and bought will decrease.
c. The demand for X will increase, and thus the price and quantity sold and bought will increase.
d. The demand for X will decrease, and thus the price and quantity sold and bought will increase.
e. The demand for X will increase, and thus the price and quantity sold and bought will remain the same.
C
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Dell computers has increased production efficiency by
A) producing output with fewer inputs. B) expanding the amount of inputs used. C) outsourcing production. D) relying on decreasing returns to scale.
A reserve currency is a currency that is:
a. used exclusively to settle domestic debts. b. specifically designed for use by commercial banks to settle accounts. c. held only by bureaucrats. d. used to settle international debts by private corporations. e. held by governments to facilitate foreign exchange market interventions.
What are some of the long-run costs of tariffs?
What will be an ideal response?
If the demand for sardines increases as income decreases, sardines are a(n)
A. normal good. B. complementary good. C. substitute good. D. inferior good.