Assuming the same sized substitution effect, normal goods have steeper cross-price demand curves than inferior goods.
Answer the following statement true (T) or false (F)
True
Rationale:
were quasilinear, bundle C would appear right above bundle B in the graph. If it is normal, C will lie to the right of B, and if it is inferior, it will lie to the left of B. 
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What can we predict about the effect on consumption of an increase in government spending?
A. Consumption will increase by the amount of the government spending. B. Consumption will increase by an amount equal to the MPC times the change in real GDP. C. Consumption will not rise as government spending rises. D. Consumption will increase by an amount equal to the MPC times the change in government spending.
Suppose a 10 percent increase in the price of textbooks decreases the quantity demanded by 20 percent. The elasticity of demand for textbooks is
A) 0.2. B) 2.0. C) 5.0. D) 10.0.
If the nominal GDP were to increase, but the real GDP were to increase by less from one year to the next, we could conclude:
A. prices went up, but output stayed the same. B. prices stayed the same, but output went up. C. both prices and output went up. D. both prices and output stayed the same.
You can think of an indifference curve as an
a. equal-cost curve. b. equal-marginal-cost curve. c. equal-utility curve. d. equal-marginal-utility curve.