If product Y is an inferior good, an increase in consumer incomes will:
a. Not affect the sales of product Y
b. Shift the demand curve for product Y to the left
c. Result in a surplus of product Y
d. Shift the demand curve for product Y to the right
Ans: b. Shift the demand curve for product Y to the left
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The equation of exchange is written as
a. V = PQM b. MQ = PV c. M = QVP d. MQ = P e. MV = PQ
If price and total revenue vary in opposite directions, demand is:
A. perfectly inelastic. B. perfectly elastic. C. relatively inelastic. D. relatively elastic.
________: the curve which depicts the relationship between Aggregate expenditures and aggregate output
Fill in the blank(s) with correct word
Refer to the diagram where curves (a) through (e) are Lorenz curves for five different countries. Income is equally distributed in:
A. none of the countries shown.
B. country b.
C. countries a and e.
D. country a.