An increase in income causes compensated demand curves to shift inward and regular demand curves to shift outward.
Answer the following statement true (T) or false (F)
False
Rationale: An increase in income will cause both demand curves to shift out if the good is normal and to shift in if the good is inferior.
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The difference between GNP and GDP is accounted for by:
(a) Depreciation; (b) Net factor income from abroad; (c) Indirect Taxes/subsidies; (d) Transfer Payments.
A limit on the quantity of a good that may be imported in a given time period is
A. An import allocation. B. A tariff. C. A comparative advantage. D. An import quota.
Compare and contrast the expenditure approach and the value-added approach to GDP.
What will be an ideal response?
In a _______________________, most economic decisions about what to produce, how to produce it, and for whom to produce it are made by buyers and sellers.
A. market-oriented economy B. macroeconomy C. microeconomy D. command economy