Suppose you only consume rice and bananas. Can both of these goods be Giffen goods in your consumption?
A) Yes, this is possible
B) No, at least one of the goods must be normal
C) No, they both can be inferior, but at least one of the goods cannot be a Giffen good
D) We need more information about the goods to answer this question
B
You might also like to view...
Financial markets pay close attention to changes in the federal funds rate because these changes ________.
A. directly affect the interest payments on the national debt B. affect other interest rates in the economy C. directly affect a large volume of loans D. indicate commercial bank lending policies
If the United States is a "net borrower" from abroad,
A) national saving is less than domestic investment. B) net foreign investment must be positive. C) net capital flows must be negative. D) the United States must be exporting more than it is importing.
Firms can make decisions using marginal analysis even if they do not know the shape of a demand curve.
Answer the following statement true (T) or false (F)
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.