Refer to the information provided in Figure 3.3 below to answer the question(s) that follow.
Figure 3.3Refer to Figure 3.3. As your income increased, the demand for X shifted from D1 to D2. Good X is
A. a normal good.
B. an inferior good.
C. an income-neutral good.
D. a luxury good.
Answer: B
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If firms in a duopoly can successfully collude
A) each firm can earn an economic profit. B) the industry, that is, both firms taken together, can earn the maximum economic profit. C) the firms achieve a cooperative equilibrium. D) All of the above answers are true.
Which of the following is a component part of investment spending?
A) the purchase of a new microwave by a fast food restaurant B) the purchase of 500 shares of corporate stock C) the sale of 500 shares of corporate stock D) all of the above
If the money demand curve shifts rightward, the AD curve also shifts rightward
a. True b. False
Which of the following best describes a subsidy?
A. Banks make low-interest loans to farmers B. Farmers pay the government $100 per ton of wheat produced C. The government puts a tax of $100 per ton on wheat imports D. The government pays farmers $100 per ton of wheat produced