An inferior good:
a. exists only in theory.
b. is only purchased by people who do not recognize quality.
c. is sometimes called a "lemon."
d. has an income elasticity between zero and one.
e. is one where the demand curve shifts to the left when income goes up.
e. is one where the demand curve shifts to the left when income goes up.
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Price elasticities of supply are always:
a. the same as price elasticities of demand. b. negative numbers. c. positive numbers. d. greater than one. e. increased when a tax is imposed.
Producer surplus is the difference between: a. what the producer is willing to receive and what the consumer must actually pay to receive a good or service. b. what the producer actually receives for a good or service and what the producer is willing to receive
c. what the consumer is willing to pay and what the consumer must actually pay to receive a good or service. d. the quantity of goods a producer is willing to and the quantity of goods the consumer actually buys.
Real GDP per person in both Alpha and Omega is equal to $2,000. Over the next 100 years, real GDP per person grows at a 1.5 percent annual rate in Alpha and at a 2.5 percent annual rate in Omega. After 100 years, real GDP per person in Alpha is ________ smaller than real GDP per person in Omega.
A. $5,410 B. $2,000 C. $8,864 D. $14,763
The principal function of the reserves that banks are required to maintain is to
What will be an ideal response?