A normal good is defined by economists to be a good:
a. with a negatively-sloped demand curve.
b. that is purchased by at least 75 percent of the population.
c. that is bought by consumers with normal tastes.
d. whose demand increases when incomes increase.
e. whose demand decreases when incomes increase.
d
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Hughes and Cain (2011) ask: Who suffered from the tariff in the 19th century? What was their answer?
(a) the government (b) producers of import-competing goods (c) consumers (d) workers in import-competing industries
Based on the evidence, most economists believe that the self-correcting mechanism operates
a. slowly with prices, but quickly with wages. b. slowly with wages, but quickly with prices. c. very slowly with wages. d. efficiently, so that stabilization policy is not necessary.
change in quantity demanded
What will be an ideal response?
In answering the question, assume a graph in which dollars are measured on the vertical axis and output on the horizontal axis. Refer to the information. For a purely competitive firm, total revenue graphs as a:
A. straight, upsloping line. B. straight line, parallel to the vertical axis. C. straight line, parallel to the horizontal axis. D. straight, downsloping line.