If the demand for macaroni and cheese decreases as income increases, macaroni and cheese is a(n)
A. inferior good.
B. normal good.
C. complementary good.
D. substitute good.
Answer: A
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Which of the following events create an outward shift of the production possibilities curve?
A. The United States moves resources from the production of goods for domestic production to the production of goods for export. B. Tax reductions reduce the cost and increase the amount of investment in factories, machinery, and research and development. C. There is an migration of young people to another country where there is more political freedom. D. The unemployment rate falls from 33 percent to 12 percent.
If a price floor on coffee is set above the market-clearing price, then
A) the quantity of coffee demanded will decrease. B) the quantity of coffee supplied will increase. C) the quantity demanded for coffee will increase. D) Both A and B will occur E) none of the above will occur.
The true cost of any product purchased by the military is its purchase price
a. True b. False
For a monopoly producing any output level greater than one, the marginal revenue curve:
A. is minimized when total revenue is maximized. B. lies above the average revenue curve. C. lies below the demand curve. D. is the same as the demand curve.