With only two goods, if the income effect is in the same direction as the substitution effect then the good is
a. normal
b. inferior but not Giffen
c. Giffen
d. There is not enough information to answer.
a
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The theory that there are no predictable trends in securities prices that can be used to "get rich quick" is the
A) dartboard theory. B) random walk theory. C) Wall Street theory. D) inefficient market hypothesis.
If we were on Lorenz curve M, the top income quintile receives about _____% of income.
A. 24
B. 40
C. 58
D. 80
The gross domestic product (GDP) excludes: a. the value of a new building
b. the value of new stocks and shares. c. the cost of a new vending machine. d. government expenditure on a new bridge. e. the money spent on the purchase of legal services by a household.
Other things the same, a decrease in the price level causes the interest rate to
a. increase, the dollar to appreciate, and net exports to increase. b. increase, the dollar to depreciate, and net exports to decrease. c. decrease, the dollar to depreciate, and net exports to increase. d. decrease, the dollar to appreciate, and net exports to decrease.