A normal good is a good for which demand increases as:
a. the income of consumers increases.
b. its own price increases.
c. the price of close substitutes decreases.
d. the total number of consumers increases.
e. a reflection of changing consumer tastes.
a
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What does it mean for a person or nation to have a comparative advantage in producing a product?
What will be an ideal response?
A 10 percent increase in the cost of restaurant meals, which are a luxury, will most likely
A. increase the purchase of meals by 10 percent. B. increase the purchase of meals by less than 10 percent. C. decrease the purchase of meals by more than 10 percent. D. decrease the purchase of meals by less than 10 percent.
All the following are examples of accounting costs, except
a. Interest payments on borrowed funds b. Costs paid to suppliers for product ingredients c. Cost of equity d. Depreciation expenses related to investments in buildings and equipment
Monetary policy attempts to control
A) the money supply and interest rates. B) the budget deficit and the money supply. C) the yield curve and interest rates. D) none of these choices.