If the quantity demanded of restaurant meals increases by 20% when income increases by 10%, restaurant meals are:
A. normal goods.
B. inferior goods.
C. complementary goods.
D. substitute goods.
Answer: A
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Under a standard of contributory negligence, a plaintiff cannot collect for damages if his cost of preventing the accident is less than
a. the defendant's cost of preventing the accident. b. the damages incurred from the accident. c. the damages incurred times the probability of the accident's occurrence. d. the punitive damages imposed by the court.
The opportunity cost of any action is
A) all the possible alternatives given up. B) the highest-valued alternative given up. C) the benefit from the action minus the cost of the action. D) the dollars the action cost.
The Great Homebody Nationwide Sweepstakes promises its winners a choice between $200,000 now or $120,000 now and $100,000 next year. The winners should take the $200,000 now
a. no matter what the interest rate is b. no matter what the interest rate is, if their rate of time preference is high c. no matter what the interest rate is, if their rate of time preference is low d. only if the interest rate is above 25 percent e. only if the interest rate is below 25 percent
If we think of good governance as a public good created by well-informed voters, we can predict that it will be:
A. oversupplied. B. undersupplied. C. in market equilibrium, if left unchecked. D. in market equilibrium, despite market interference.