As John's income has increased, he has purchased less instant noodles. Instant noodles are
A) a normal good for John.
B) an inferior good for John.
C) not following the law of demand.
D) not scarce for John.
Answer: B
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A key factor that determines the geographic extent of a housing market is the distance that commuters are willing to travel from home to work
Which of the following events would NOT help to expand the geographic extent of the housing market in a metropolitan area? A) Price of gasoline declines B) State gasoline tax increases C) Public transit fares decrease D) none of the above
If a monopolistically competitive firm's demand curve is shifting left, it will stop shifting only when:
A. firms stop leaving the industry. B. firms stop entering the industry. C. the firm raises its price. D. the firm lowers its price.
Which of the following is false?
a. The Fed controls the supply of money, even though privately owned commercial banks actually create and destroy money by making loans. b. With a 10% required reserve ratio, a $10,000 cash deposit in a bank would result in an increase in the bank's excess reserves by $1000. c. With a 10% required reserve ratio, a $1,000 bond purchase by the Fed directly creates $1,000 in money in the form of bank deposits, and indirectly permits up to $9,000 in additional money to be created through the multiple expansion in bank deposits. d. When the Fed sells government bonds, it will tend to cause a multiple contraction of bank deposits.
What type of relationship does the law of demand demonstrate?
A. inverse B. direct C. dynamic D. equilibrium