You lose your job and, as a result, you buy more frozen pizzas. For you, frozen pizza are a(n)
a. luxury good.
b. inferior good.
c. normal good.
d. complementary good.
b
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Jake plans to spend $100 on fried chicken and Pepsi. The price of a fried chicken is $5 and Pepsi is $2 per bottle. If Jake buys 10 fried chickens how many bottles of Pepsi can he buy?
A) 50 B) 10 C) 25 D) 75
Determining “what ought to be” in the economy is considered
a. positive economics. b. normative economics. c. distributive economics. d. mesoeconomics.
Since a monopolistic competitor produces a product with many close substitutes, but none exactly like it. As a result, the firm:
a. has no market power. b. faces a highly inelastic demand curve. c. has unlimited market power. d. has some degree of market power.
The view that changes in the money supply is the primary cause of change in real output and the price level is most closely associated with:
A. Rational expectations theory B. Real business cycle theory C. Mainstream economics D. Monetarism