An indication that the economy is in recession, e.g., a rise in the number of used clothing stores for babies, suggests that
a. used clothes for babies are a necessity
b. used clothes for babies are an inferior good
c. used clothes for babies are a normal good
d. new clothes for babies are a luxury
e. used clothes for babies have price-elastic demand
B
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If capital per hour of labor decreases, real GDP per hour of labor
A) decreases because the level of technology decreases. B) increases because the level of technology increases. C) increases for a given level of technology. D) decreases for a given level of technology.
Begin with the formula showing how households can divide their income. Then use this formula and the expenditure approach to GDP to show how investment is financed from three sources
What will be an ideal response?
The above figure shows Bob's utility function. He currently has $50 and is considering an investment that has a 50% chance of being worth $100 and a 50% chance of being worth $0. Bob will make the investment
A) if it costs less than $50. B) if it costs less than $30. C) if it is a fair game. D) under no circumstances.
Arrow's impossibility theorem is not relevant to modern analysis of political economy.
A. True B. False C. Uncertain