Which of the following is most likely to be an inferior good?
A. Ocean cruises
B. Used clothing
C. Steak
D. Luxury automobiles
Answer: B
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If the Fed wished to decrease inflation, it could
A) increase the reserve requirement or conduct an open market sale. B) increase the reserve requirement or conduct an open market purchase. C) decrease the reserve requirement or conduct an open market sale. D) decrease the reserve requirement or conduct an open market purchase.
In the figure above, production efficiency occurs at ________, and allocative efficiency occurs at ________
A) all points on the PPF; only one point on the PPF B) only one point on the PPF; all points on the PPF C) only one point on the PPF; only one point on the PPF D) all points on the PPF; all points on the PPF E) all points on the PPF; all points above the PPF
How will the invisible hand move corn prices in response to:
a. a flood that destroys a great deal of the corn crop? b. a rise in the price of wheat (a substitute for corn)? c. a change in consumer tastes away from corn dogs toward hot dogs? d. an increase in the number of people with access to the corn market?
The law of diminishing marginal utility helps explain: a. why most individual demand curves are straight lines. b. why most supply curves slope upward
c. why most individual demand curves slope downward. d. why marginal utility falls when total utility falls.