If renting videos is an inferior good, demand for this service will rise when consumer income falls
a. True
b. False
Indicate whether the statement is true or false
True
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The stock market is also known as the ________.
A) capital market B) foreign-exchange market C) bond market D) equity capital market
Real GDP per person in Richland is $20,000, while real GDP per person in Poorland is $10,000. However, Richland's real GDP per person is growing at 1 percent per year, and Poorland's real GDP per person is growing at 2 percent per year. After 50 years, real GDP per person in Richland minus real GDP in Poorland is:
A. positive and greater than $10,000. B. negative. C. zero. D. positive but less than $10,000.
In the circular flow model, the factor markets are the markets in which
A) consumption goods and services are bought and sold. B) government goods and services are provided. C) land, labor, capital, and entrepreneurship are bought and sold. D) investment goods and services are bought and sold. E) governments impose all their taxes.
To help unscramble cause and effect, economists
A) use the concept of opportunity costs. B) must use the ceteris paribus assumption. C) answer the "what" question. D) answer the "how" question. E) must use normative statements.