If a good is an inferior good, then its
A) demand curve will be upward sloping.
B) income effect reinforces the substitution effect.
C) income elasticity is negative.
D) Engel curve cannot be drawn.
C
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Who said our economy "seems capable of remaining in a chronic condition of subnormal activity for a considerable period without any marked tendency either toward recovery or toward complete collapse"?
A. David Ricardo B. Jean Baptiste Say C. Wassily Leontief D. John Maynard Keynes
A positive economic statement must be verifiable
a. True b. False Indicate whether the statement is true or false
According to the cost-push theory, what is responsible for inflation?
(A) The economy is operating as though there was a war. (B) Too much money is in circulation. (C) Demand for goods and services exceeds existing supply. (D) Producers raise prices to meet increased costs.
Answer the following questions true (T) or false (F)
1. When voluntary exchange takes place, neither party gains from the exchange. 2. A college must decide if it wants to offer more adult literacy classes. This decision involves answering the economic question of "what to produce." 3. In a centrally planned economy, the households and firms decide how economic resources will be allocated.