For some products, purchases tend to decrease as the buyer's income increases. Such products are known as:
a. Normal goods
b. Inferior goods
c. Inverse goods
d. Common goods
b. Inferior goods
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Which of the following groups is an investment bank NOT likely to visit during a "road show"?
A) institutional investors B) individual investors C) university endowments D) mutual funds
Capital per person k is higher in Japan than in the United States. As a result ________
A) per capita income is higher in Japan B) total factor productivity is higher in Japan C) the marginal product of capital is higher in Japan D) all of the above E) none of the above
Refer to the above figure. S1 is the supply curve that includes only private costs. S2 is the supply curve that includes social costs. The free market rate of output is ________ and the corrected, socially optimal amount of output is ________
A) Q4; Q1 B) Q2; Q1 C) Q4; Q2 D) Q2; Q4
Country X imports rice from the world market. Which of the following policy instruments, if adopted by its government, may result in a switch from rice being imported to being exported?
A. Division of land holdings B. An agricultural price support that includes the government selling any excess production to foreign buyers C. Taxing imports of agricultural inputs D. An agricultural price ceiling that creates domestic excess demand