If pork and beans is an inferior good, other things being equal, an increase in consumer income will decrease the demand for pork and beans
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following is true?
A) MSB = MB + Marginal external benefit. B) MB = Marginal external benefit - MSB. C) MB = Marginal external benefit + MSC. D) MSB = Marginal external cost - marginal external benefit. E) MSB = MB + Marginal external benefit - Marginal external cost.
A commercial bank creates money when it does all the following except ______
A. decreases its excess reserves B. makes loans C. creates deposits D. puts cash in its ATMs
In the short run, the aggregate supply curve:
A. is perfectly inelastic. B. slopes upward. C. is perfectly elastic. D. slopes downward.
The model of perfect competition and the model of monopolistic competition differ in that
A) perfect competition assumes many buyers and sellers while monopolistic competition assumes many buyers but few sellers. B) perfect competition assumes easy entry of new firms while there are more significant barriers to entry in monopolistic competition. C) perfect competition assumes firms make zero profits in the long run and monopolistic competition assumes firms make positive profits. D) perfect competition assumes the product is homogeneous and monopolistic competition assumes the product is differentiated.