Economists use the term normal good to refer to goods that
a. you consume on a daily basis.
b. you consume more of when your income falls.
c. you consume more of when your income rises.
d. consumers choose the same quantities of regardless of income.
c. you consume more of when your income rises.
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The situation in which one large firm can provide the output of the market at a lower cost than two or more smaller firms is called ______.
a. perfect competition b. producer surplus c. a natural monopoly d. an illegal barrier
In an article regarding Bangladesh's economy, the author suggests that the government give tax breaks on investment dollars, research and development, and donations to educational institutions. As a result of enacting the policies, the AE curve will shift __________ and the AD curve will shift __________.
a) upward; leftward b) upward; rightward c) downward; rightward d) downward; leftward
An externality
A) may be positive or negative. B) means a rapidly rising cost borne by consumers. C) is the cost of producing a good outside the United States. D) is the indirect cost, the overhead, of producing a product.
The Lorenz curve is criticized for all of the following EXCEPT
A. that it excludes transfers-in-kind income. B. that it does not account for the size differences of households. C. that it does not account for the impact of trade on the standard of living. D. that it does not account for age differences of households.