The figure shows the relationship between Moira's income and the quantity of macaroni that she demands. When income is less than $350 per month, macaroni ________
A) is an inferior good
B) is a normal good
C) has many substitutes
D) has negative income elasticity
B
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Consider two countries, Alpha and Beta. In Alpha, real GDP per capita is $6,000. In Beta, real GDP per capita is $9,000
Based on the economic growth model, what would you predict about the growth rates in real GDP per capita across these two countries? A) The growth rate of real GDP per capita in Alpha and Beta will be the same. B) The economic growth model makes no predictions regarding differences in growth rates of real GDP per capita across the two countries. C) The growth rate of real GDP per capita will be lower in Alpha than it is in Beta. D) The growth rate of real GDP per capita will be higher in Alpha than it is in Beta.
The traditional view of the production process is that capital is subject to
a. constant returns. b. increasing returns. c. diminishing returns. d. diminishing returns for low levels of capital, and increasing returns for high levels of capital.
Implicit costs are
A. costs that are taken into consideration by accountants. B. the opportunity costs of using factors that a producer does not buy or hire but already owns. C. the costs of using factors that a producer hires or rents. D. costs that are variable in the short run and fixed in the long run.
Which of the following is a disadvantage of the corporate form of business organization?
A) limited liability B) limited financing C) double taxation D) unlimited liability