If a good is inferior in an economic sense:
a. it is demand price elastic.
b. it is demand price inelastic.
c. the income elasticity of demand is negative.
d. it is a low-quality good.
e. it is not the highest quality good in its class.
c
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In the above figure, the marginal cost of the last unit produced by the profit maximizing firm is
A) $5. B) $10. C) $15. D) $20.
The quantity equation states that the
A) money supply times the velocity of money equals the price level times real output. B) money supply times the price level equals real output divided by the velocity of money. C) money supply divided by the velocity of money equals the price level divided by real output. D) money supply times the price level equals real output times the velocity of money.
Fiat money is money
a. that has little intrinsic value and is not backed by a commodity. b. that is not included as part of the M1 money supply. c. that is backed by gold or silver held on reserve by the government. d. such as coins that are made from metal.
When a firm decides to retain its earnings instead of paying dividends, the stockholders necessarily suffer
a. True b. False Indicate whether the statement is true or false