Alex receives a raise at work and continues to work the same number of hours each week. What is the most likely way that his demand for $3 T-shirts, which he considers an inferior good, change?
(A) It will increase.
(B) It will stay the same.
(C) It will fluctuate erratically.
(D) It will decrease.
Ans: (D) It will decrease.
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Which of the following is considered a depository institution?
I. the U.S. Treasury II. a commercial bank like Citibank III. a credit union for federal government employees A) I only B) I and II C) II and III D) I, II and III
According to the circular flow model, expenditures by one person translate:
A. directly into income for someone else. B. indirectly into the value of that person's time. C. directly into his or her income. D. indirectly into the household's budget.
A production possibilities curve is drawn based on which of the following assumptions?
a. Resources are fixed and fully employed, and technology advances at the rate of growth of the economy overall. b. Resources such as labor and capital will grow, are fully employed, and technology is unchanged. c. None of the answers are correct. d. Resources can vary, most resources experience times of unemployment, and technology advances, particularly during wartime. e. Resources such as nonrenewable resources will decline, but labor remains fully employed, and technology is unchanged.
The Mexican demand for American goods leads to the demand for:
A. U.S. dollars and the supply of Mexican pesos on the foreign exchange market. B. U.S. dollars and the supply of U.S. dollars on the foreign exchange market. C. Mexican pesos and the supply of U.S. dollars on the foreign exchange market. D. U.S. dollars and Mexican pesos on the foreign exchange market.