For an inferior good, the income elasticity of demand is negative
a. True
b. False
Indicate whether the statement is true or false
True
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A perfectly competitive firm decides to shut down if:
a. the price falls below the average-total-cost. b. average revenue falls below the average-variable-cost. c. the price falls below the marginal cost. d. the average revenue curve lies below the marginal cost curve. e. the total revenue is less than total cost.
A healthy growing economy has a strong _______orientation.
a. government b. market c. traditional d. command
A perfectly contestable market is one which a firm can enter and exit without losing its investment.
Answer the following statement true (T) or false (F)
If a union raises the wage in its industry above equilibrium then employment in that industry
a. and non-unionized industries falls. b. falls and employment in non-unionized industries rises. c. rises and falls in non-unionized industries. d. and non-unionized industries rises.