When economists speak of normal goods they mean goods for which
A) the demand curve slopes downward.
B) marginal utility is positive.
C) marginal utility decreases as consumption increases.
D) demand decreases when incomes fall.
D
You might also like to view...
Once a cartel determines the profit-maximizing price
A) each firm faces the temptation to cheat by raising its price. B) each firm faces the temptation to cheat by lowering its price. C) changes in the output of any member firm will not affect the market price. D) entry into the industry by rival firms will not affect the profit of the cartel.
Use the above figure. The long-run Phillips curve is best depicted by graph
A) A. B) B. C) C. D) D.
How does a budget deficit lead to a trade deficit?
A. The trade deficit triggers higher interest rates, which increase the budget deficit. B. The budget deficit leads to higher interest rates and exchange rates, which shrink net exports. C. The trade deficit causes lower interest rates, which leads to economic recession and a budget deficit. D. The budget deficit causes lower exchange rates, which decrease net exports.
QN=75 (17802) Suppose a basket of goods and services has been selected to calculate the CPI and 2002 has been selected as the base year. In 2002, the basket's cost was $50; in 2004, the basket's cost was $52; and in 2006, the basket's cost was $54.60. The value of the CPI in 2004 was
a. 96.2. b. 102.0. c. 104.0. d. 152.0.