An inferior good exhibits
A) a negative income elasticity.
B) a downward sloping Engel curve.
C) a decline in the quantity demanded as income rises.
D) All of the above.
D
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Guiseppe Vibrato was so sick of his job that he quit, and now spends his days at the tavern, saying he never wants to work again. Guiseppe is
A) a discouraged worker. B) a discouraged drinker. C) unemployed. D) neither employed nor unemployed.
The selection of a new policy takes place during a period of time known as the _____
a. activity lag b. decision-making lag c. effectiveness lag d. implementation lag e. recognition lag
The audit working paper known as a "proof of cash" is a means of proving that checks paid by the bank during the test period were not in excess of authorized cash receipts during that same test period.
a. true b. false
When a good is illegal, the supply curve is likely to be inelastic because
A. the difficulty of expanding operations as price rises because of the increased likelihood of capture. B. extra costs associated with avoiding capture. C. the ease of finding new buyers without getting caught. D. the ease with which sellers can expand operations into new territory when price rises.