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

Economics

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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

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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?

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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

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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

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