A good is inferior for a consumer if
A) it is never included in his or her consumption bundle.
B) its consumption rises when income rises.
C) its consumption falls when income rises.
D) some minimal level of the good must be consumed to assure the consumer's survival.
C
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Which of the following is a characteristic of economic rent?
A. It equals economic profit minus accounting profit. B. It can never be negative. C. It can be positive, zero, or negative. D. It is driven towards zero by free entry.
Refer to Figure 10.5. A shift from MP1 to MP2 will occur if
A) the Fed decreases its target for the short-term nominal interest rate. B) the term structure effect increases. C) the default-risk premium decreases. D) the expected inflation rate increases.
The total civilian labor force is comprised of
A) the unemployed and the employed. B) only the employed. C) all individuals over 16 years of age, whether or not they work or are seeking work. D) only full-time employed individuals between the ages of 18 and 55.
A clothing store can sell two shirts for $20 each or three shirts for $18 each. At a quantity of three shirts sold, marginal revenue is _____
a. $18 b. $14 c. $54 d. $20 e. $44