A good is classified as inferior if
a. consumers buy less when the price rises.
b. consumers buy less when income rises.
c. consumers buy less when the price falls.
d. consumers buy more when income rises.
B
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Under U.S. commercial policy, the escape clause results in
A) temporary quotas granted to firms injured by import competition. B) tariffs that offset export subsidies granted to foreign producers. C) a refusal of the U.S. to extradite anyone who escaped political oppression. D) tax advantages extended to minority-owned exporting firms. E) tariff advantages extended to certain Caribbean countries in the U.S. market.
As a general rule, zero pollution is not socially desirable because
A. there would be no production. B. the Environmental Protection Agency (EPA) needs to have something to do. C. no pollution would lead to global warming. D. all of these answer options are correct.
Which of the following is most likely an example of constant returns to scale?
A. Alpha-Beta Inc. raised its price 10 percent after a 5 percent increase in production costs. B. The XYZ Co. increased production 25 percent and experienced a 30 percent increase in its total cost. C. The per-unit costs of Excel Publishing Company's manuals fell after a large order was received from the government. D. Widget Manufacturing doubled its production by opening a new plant that was identical to its old plant.
Suppose that a bank's actual reserves are $5 million, its checkable deposits are $5 million, and its excess reserves are $3 million. The reserve requirement must be:
A. 40 percent. B. 20 percent. C. 10 percent. D. 5 percent.