If the demand for computers increases as consumers' incomes rise, then computers are:
A. a complementary good.
B. a substitute good.
C. an inferior good.
D. a normal good.
Answer: D
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Answer the following statement(s) true (T) or false (F)
1. All cost increases are passed on to a firm's customers in the form of higher prices. 2. Higher fixed costs may cause a firm to shut down its operations but will not otherwise affect its production and pricing decisions. 3. Either a rise in marginal cost or a fall in marginal revenue could cause a firm to reduce its output. 4. Higher fuel costs would cause a delivery firm to raise the price it charges. 5. Higher insurance costs would cause a delivery firm to raise the price it charges.
If the value of the U.S. dollar changes from 1.4 euros to 1.2 euros, we would expect that the United States would experience a ________ in exports and a ________ in imports
A) rise; rise B) fall; fall C) rise; fall D) fall; rise
The simple quantity theory of money assumes that
A) velocity and Real GDP are constant. B) only velocity is constant. C) only the money supply is constant. D) only the price level is constant.
The Gini coefficient index
a. is a curve that bows outward from the Lorenz curve. b. is a straight line coinciding with the Lorenz curve. c. has a minimum value of 1.0. d. is another way of expressing income inequality.