Engel's Law claims that
a. the percentage increase in quantity demanded for food is less than the percentage increase in income
b. food is an inferior good (as economists define inferior good, of course)
c. the demand for food is income elastic
d. the income elasticity for food is negative
e. consumers' demand for food does not increase when the price of food falls
A
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In the above figure, the curve labeled a is the ________ curve and the curve labeled b is the ________ curve
A) marginal cost; marginal benefit B) marginal cost; trade line C) marginal benefit; trade line D) production possibilities frontier; trade line
When the interest rate is above the equilibrium interest rate there is an
A) excess quantity of money and people will sell bonds. B) excess demand for money and people will sell bonds. C) excess quantity of money and people will buy bonds. D) excess demand for money and people will buy bonds.
If a firm's marginal revenue from its 100th unit of output is $50 and the marginal cost from its 100th unit of output is $45, then in the short run this firm should:
a. increase its plant size. b. change its technology. c. produce more than 99 units of output. d. produce less than 100 units of output. e. shut down.
The U.S. economy experienced recessions in 1974–75, 1980–82, 1990–91, 2001, and 2007–09 that were each preceded or accompanied by a rise in the key input of
a. wages. b. food prices. c. oil prices. d. steel prices.