Answer the following statement(s) true (T) or false (F)
1. The Engel curve contains information that is not found in the indifference curve diagram.
2. The Law of demand can only be violated if a good is inferior.
3. All Giffen goods must be inferior goods, but not all inferior goods are Giffen goods.
4. In a two-good world, one good-but not both-can be inferior.
5. An inferior good is one for which the substitution effect is relatively large.
1. false
2. True
3. True
4. True
5. False
You might also like to view...
National income is defined as
A) gross domestic product less the consumption of fixed capital. B) gross national product plus transfer payments. C) gross domestic product less retained earnings plus transfer payments. D) gross national product less retained earnings plus transfer payments.
It is argued that global trade tends to be more important to countries with smaller economies than the U.S. Is this empirically verified?
What will be an ideal response?
A perfectly competitive firm has total revenue and total cost curves given by:
TR = 100Q TC = 5,000 + 2Q + 0.2 Q2 a. Find the profit-maximizing output for this firm. b. What profit does the firm make?
The business cycle consists of four phases. In sequence, they are prosperity,
a. recovery, recession, and downturn b. recovery, downturn, and recession c. upturn, downturn, and recession d. downturn, recovery, and recession e. downturn, recession, and recovery