As John's income has increased, he has purchased less instant noodles. Instant noodles are
A. an inferior good for John.
B. not following the law of demand.
C. not scarce for John.
D. a normal good for John.
Answer: A
You might also like to view...
The manager of Steel Works learns of a new technological interdependency between the intermediate stage and the final stage of production. If Steel Works currently contracts with another firm for the final stage of production, which of the following is true?
A) The manager has less of an incentive to integrate forward. B) The manager has less of an incentive to integrate backward. C) The manager has more of an incentive to integrate backward. D) The manager has more of an incentive to integrate forward.
In the short run, if a firm's total product is increasing: a. its marginal product must be increasing
b. its marginal product must be positive. c. its marginal product could be increasing or decreasing. d. both b. and c. are true.
Which model is used to evaluate the effects of macroeconomic policy such as tax cuts?
A. Aggregate demand and aggregate supply B. Demand and supply C. Game theory D. Circular flow.
Because there are many sellers in a competitive market, individual firms are unable to maximize profits
a. True b. False Indicate whether the statement is true or false