Which of the following is an example of an inferior good?
a. A 15 percent increase in income results in a 17 percent decrease in demand for subcompact cars.
b. A 10 percent increase in income results in a 14 percent increase in demand for sports cars.
c. A 12 percent increase in income results in a 12 percent increase in demand for sedan cars.
d. A 20 percent decrease in income results in a 30 percent decrease in demand for luxury cars.
a. A 15 percent increase in income results in a 17 percent decrease in demand for subcompact cars.
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A normal good is a good for which the demand increases as income decreases, holding everything else constant
Indicate whether the statement is true or false
When the government fixes its exchange rate
a. it creates an unfavorable balance of trade b. it creates trade surpluses c. it does so to allow the exchange rate to reach equilibrium d. it acts as an arbitrager e. it is not unlike a government policy to control agricultural prices
A normal production possibilities frontier has a
a. positive slope, and is steeper near the horizontal axis than near the vertical axis. b. negative slope, and is steeper near the horizontal axis than near the vertical axis. c. positive slope, and is steeper near the vertical axis than near the horizontal axis. d. negative slope, and is steeper near the vertical axis than near the horizontal axis. e. zero slope, and it does not touch the horizontal axis.
Between 1992 and 2012, the percentage of college students receiving federally-funded grants
A. increased from 58% to 73%. B. decreased from 73% to 58%. C. increased from 8% to 13%. D. slowly increased to around 47%.