Goods are ________ when the income elasticity of demand is positive
A) complements
B) elastic
C) inferior
D) substitutes
E) normal
D
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The presence of an incentive system that encourages growth
A) guarantees that growth will occur. B) creates the right conditions for growth to occur. C) cannot exist in poor countries. D) existed even in hunter-gatherer societies. E) means that the government must be a democracy.
Refer to Figure 9-2. The increase in domestic producer surplus as a result of the tariff is equal to the area
A) C + D + G + H + I. B) C + G. C) C. D) A + C + G.
Can the U.S. dollar and the euro both appreciate relative to each other? a. Yes, both countries can gain in this manner
b. Yes, provided the central banks agree to permit it. c. No, if one currency appreciates relative to another, the other depreciates. d. No, the citizens of the countries would not agree to it.
Financial intermediaries that primarily accept savings and make loans are known as:
a) commercial banks. b) credit cards. c) federal financial regulators. d) securities firms.