If people consume fewer bottles of orange juice as their income rises, orange juice is
A. an inferior good.
B. a necessity.
C. a normal good.
D. an abnormal good.
Answer: A
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A lower real interest rate ________ saving and ________ consumption spending.
A. increases; increases B. does not change; does not change C. increases; decreases D. decreases; increases
Why is it a bad business practice to assume that raising prices will lead to increases in total revenue?
What will be an ideal response?
An increase in the average tax rate that ________ the budget deficit in an example of ________
A) raises, automatic stabilization B) raises, discretionary fiscal policy C) lowers, automatic stabilization D) lowers, discretionary fiscal policy
If the wage rate increases,
a. MPP will increase b. MLC will increase c. MRP will increase d. MPP will decrease e. TR will increase