Jaime’s income elasticity for science fiction novels is 1.2 and for mystery novel -1. For Jaime, science fiction novels are ____________and mystery novels are ____________:
a. normal; normal
b. normal; inferior
c. inferior; normal
d. inferior; inferior
d. inferior; inferior
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The supply curve for tickets for a sporting event
A) is perfectly inelastic. B) is vertical. C) has a price elasticity of zero. D) All of the above.
If a nation is more productive than a trading partner, can it still gain from trade with that partner? Use the concepts of absolute and comparative advantage to explain
What will be an ideal response?
The figure below illustrates the market for British pounds. D£ and S£ are the nonofficial demand and supply curves of the British pounds, respectively.
If the U.S. Federal Reserve uses a contractionary monetary policy to raise U.S. interest rates, the ________ curve would shift right and the pound would tend to
A. S£; appreciate. B. S£; depreciate. C. D£ curve and S£; appreciate. D. D£; depreciate.
The level of real GDP in the long run is called
A) potential GDP. B) short-run GDP. C) frictional GDP. D) low-capacity GDP.