If a decrease in income increases the demand for a good, then the good is a(n)
a. substitute good.
b. complementary good.
c. normal good.
d. inferior good.
d
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According to the table above, clothing production exhibits
A) decreasing returns to scale. B) constant returns to scale. C) increasing returns to scale. D) varying returns to scale.
How can the Federal Reserve actually increase the money supply?
A. by delaying transfer of money among banks B. by raising the discount rate C. by doubling the reserve requirement D. by purchasing more government bonds in the open market
Refer to Figure 23.1 for a perfectly competitive firm. This firm should shut down in the short run if the market price is below
A. $20. B. $10. C. $5. D. $15.
Answer the following statements true (T) or false (F)
1. Creative destruction is something that our society should try to avoid, through government regulation of business. 2. Creative destruction entails both costs as well as benefits. 3. The costs of competition's creative destruction are often widespread, while the benefits often accrue to only a few. 4. Some economists are now proposing that patents may be detrimental to technological advance in industries with complicated multiple-component products.