During an economic downturn when consumer income falls, the demand for tacos increases and the demand for sushi decreases. This implies that tacos
A. are a normal good and sushi is an inferior good.
B. are an inferior good and sushi is a normal good.
C. are an economic bad and sushi is an economic good.
D. and sushi are complements.
Answer: B
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When the federal funds rate equals the discount rate
A) the supply curve of reserves is vertical. B) the supply curve of reserves is horizontal. C) the demand curve for reserves is vertical. D) the demand curve for reserves is horizontal.
When a firm is a price taker, changes in its sales quantity have ______ effect on the price it can charge.
A. a positive B. a negative C. no D. little
If the U.S. government reports that GDP in the third quarter was $16 trillion at an annual rate, then the amount of income and expenditure during quarter three was $4 trillion
a. True b. False Indicate whether the statement is true or false
The figure below represents the effects in the labor markets due to migration. Here, the world has been divided into a high-income "North" (left panel) and a low-income "South" (right panel). Dn and Sn are the labor demand and the labor supply curves in North. Ds and (Sr + Smig) are the labor demand and pre-migration labor supply curves in South. Sr is the post-migration labor supply curve in South. The value c is the cost of migrating.
The net gain to the migrants is represented by the area
A. (a + f). B. (e + f). C. (d + e). D. (a + b).