If an individual's income increases, then the demand for a normal good will:
a. decrease.
b. increase.
c. remain constant.
d. rotate.
e. fall to zero.
b
You might also like to view...
Tobin's model of the speculative demand for money shows that people hold money as a store of wealth as a way of
A) reducing risk. B) reducing income. C) avoiding taxes. D) reducing transactions cost.
Suppose a competitive firm's total revenue is $1,000,000 where MR = MC, its explicit variable costs are $900,000, its fixed costs are $90,000 of which $60,000 are sunk in the short run
If its implicit opportunity costs are $50,000, the firm should A) produce because its economic profit is positive. B) produce because its economic profit is zero. C) produce even though its economic profit is negative. D) shut down.
An individual who is employed part time, but is looking for a full-time job, is classified as:
a. frictionally unemployed. b. cyclically unemployed. c. structurally unemployed. d. employed.
If labor supply and labor demand both increase, employment
a. and the real wage rate will both increase b. will increase but the real wage rate will fall c. will increase but the real wage rate will remain constant d. and the real wage rate will remain constant e. will increase but the effect on the real wage rate will depend on the magnitude of the shifts