As the economy recovers from a recession, we should expect that demand for:
a. inferior goods will fall and demand for non-inferior goods will rise.
b. all goods will rise.
c. inferior goods will rise and demand for non-inferior goods will fall.
d. all goods will fall.
e. complements will fall.
a
You might also like to view...
Refer to Table 9-11. Prior to trade, what was the opportunity cost to produce 1 hat in Denmark?
A) 1/6 of a clock B) 1/2 of a clock C) 2 clocks D) 6 clocks
Which is the best example of idiosyncratic risk?
A) a financial crisis B) a lawsuit because the corporation produced a faulty product C) a recession D) rising interest rates
The market-clearing curve for substitutes is:
A. horizontal. B. downward-sloping. C. vertical. D. upward-sloping.
When price is the rationing criterion, individuals have a strong incentive to
a. ignore the wishes of others when making decisions about how to use their resources. b. provide services to others in exchange for income. c. avoid exchanges because in every exchange there will be one person who gains and another who loses. d. substitute promises for the consistent delivery of a quality product.