During recessions, when some workers lose their jobs and have lower incomes, sales of durable goods (goods with a life expectancy of 3 years or more) decline. Apparently, durable goods are:
A. inferior goods.
B. substitutes.
C. complements.
D. normal goods.
Answer: D
You might also like to view...
In the traditional Keynesian model, an increase in government spending raises total planned real expenditures by more than the original increase in government spending because
A) of the crowding-out effect on consumption spending. B) consumption spending is not related to real GDP. C) consumption spending depends positively on real GDP. D) consumption spending depends negatively on real GDP.
Suppose Maria can make 12 pizzas or 4 lasagnas every Saturday afternoon, while Gina can make 10 pizzas or 2 lasagnas every Saturday afternoon. Which statement is true?
A) Maria is the most efficient producer of both pizza and lasagna. B) Gina is the least efficient producer of both pizza and lasagna. C) It costs Maria 3 pizzas to produce 1 lasagna. D) It costs Gina 5 lasagnas to produce 1 pizza. E) All of the above are true.
In 2014, ________ of the uninsured were younger than age 35
A) about 10 percent B) less than one-third C) over half D) almost 85 percent
If there is a technological inprovement, PPF curve will shift inward.
Indicate whether the statement is true or false.