If a decrease in income leads to an increase in the demand for macaroni, then macaroni is
A) an inferior good. B) a necessity. C) a neutral good. D) a normal good.
A
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Which trade strategy have developing countries used to restrict imports of manufactured goods so that the domestic market is preserved for home producers?
A) international commodity agreement B) export promotion C) multilateral contract D) import substitution E) export subsidies
One major assumption of economics is that people
A) act as if they systematically pursue self-interest. B) behave randomly without any predictable pattern. C) are sometimes rational and sometimes irrational. D) always pursue the interests of others.
A resource that is a common property is
A) oil on land owned by a drilling and refining company. B) natural gas on land owned by an energy producer. C) timber on land owned by a lumber company. D) water in a publicly owned river.
A nonprice determinant of demand refers to something that:
A. affects the price other than demand. B. affects demand other than the price. C. determines how large a role prices play in the demand decision. D. determines how prices are affected by income.