If income rises and a good is inferior, then demand for that good will decrease
a. True
b. False
A
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The ratio of money created by the lending activities of the banking system to the money created by the government's central bank is called the:
A. money multiplier. B. reserve ratio. C. federal funds. D. demand deposits.
Working as an elevator operator used to be a common job in the workforce four decades ago, but today few jobs remain. The unemployment created by the introduction of automatic elevators would be considered:
a. Structural b. Frictional c. Cyclical d. Wait
If a firm has reached the minimum efficient scale, any additional output produced by the firm will result in a lower average cost in the long run.
Answer the following statement true (T) or false (F)
Suppose you only consume food and clothing, and clothing is plotted on the vertical axis. Also, you purchase food at a fixed price (PF), but the price of clothing declines as you buy in larger quantities (i.e., quantity discounts)
What does the budget line look like in this case? A) The budget line is a straight line B) The budget line is now concave to (bows out from) the origin C) The budget line is now convex to (bows in toward) the origin D) The budget line will not be a straight line, but it may be concave or convex