Which term describes a good in which the quantity demanded rises as income rises, and in which quantity demanded falls as income falls?
a. Complement good
b. Inferior good
c. Normal good
d. Superior good
c. Normal good
A normal good is a good in which the quantity demanded rises as income rises, and in which quantity demanded falls as income falls.
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There is $5,000,000 of currency in Econland, all held by banks as reserves. The public does not hold any currency. If the banks' desired reserve/deposit ratio is 0.25, then the money supply equals:
A. $20,000,000 B. $10,000,000 C. $6,250,000 D. $5,000,000
At full employment there is no
A) unemployment. B) cyclical unemployment. C) avoidable unemployment. D) frictional unemployment. E) structural unemployment.
A trade policy that protects domestic producers from certain actions taken by foreign governments or firms is
A) illegal under WTO rules. B) called a contingent protection policy. C) considered a beggar-thy-neighbor policy. D) intended to protect domestic consumers.
Refer to Figure 9.2. At price 0H and quantity Q1, producer surplus is the area
A) 0ABQ1. B) 0EDQ1. C) AHB. D) 0FGQ1. E) none of the above