A normal good is defined as one
a. having a downward-sloping demand curve
b. that is neither a luxury nor a basic good
c. that is bought by consumers with normal tastes
d. whose demand increases when incomes increase
e. whose demand decreases when incomes increase
D
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Under a relative concept of poverty, poverty
a. doesn't really exist. b. is higher in rich countries than in poor countries. c. can never be wholly eliminated by public policy. d. declines as technology advances.
If the price of a good in a closed economy is lower than the world price, then with an open economy this country will be a ________ of that good.
A. net exporter B. net importer C. price taker D. price setter
The convergence theory is also known as:
A. Moore's law. B. Say's law. C. the income effect. D. the catch-up effect.
Empirical evidence with respect to the labor supply decision suggests that the substitution effect seems to dominate for most people, which means that the aggregate labor supply responds ________ in the wage rate.
A. positively to a decrease B. independently from an increase or a decrease C. negatively to an increase D. negatively to a decrease