For inferior goods, a decrease in income will cause the
A. demand to increase.
B. quantity demanded to increase.
C. demand to fall.
D. quantity demanded to fall.
Answer: A
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Which of the following statements is NOT true about using per capita real GDP to measure a nation's economic growth?
A) The definition does not indicate how the increase in growth is being disturbed among the nation's population. B) The definition assumes that some of the increase in productivity goes to the poor. C) The definition is not perfect for measuring increases in a nation's productive capacity. D) The definition has understated actual economic growth because it does not take into consideration changes in leisure.
A recent flood in the Midwest has destroyed much of the farmland that lies in fertile regions near the rivers. Describe the effect of the flood on the marginal productivity of land, labor, and capital. How would the flood affect the price of inputs? Provide some examples
If Atlantis has an open economy, then it:
A. has a democratically elected government. B. does not trade with other countries. C. trades with other countries. D. allows imports but not exports.
Under the Bretton Woods agreement, the officially determined value of a country's currency is referred to as its
A. par value. B. value-to-weight ratio. C. GDP. D. exchange rate.