Max is shopping for a new winter jacket. The salesperson explains that two coats have identical features-the Columbia jacket that costs $120, and the Burton jacket that costs $300. Max buys the Burton jacket. Burton jackets may be a good example of:
A. a normal good.
B. an inferior good.
C. a Veblen good.
D. a Giffen good.
D. a Giffen good.
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Nominal GDP is $9.6 million dollars, real GDP is $9 million, and velocity is 1.2. The quantity of money is ________ million
A) $10.8 B) $12 C) $7.5 D) $8 E) $11.52
According to the quantity theory of money, in the long run an increase in the quantity of money creates an increase in the price level but does not increase real GDP
Indicate whether the statement is true or false
Rather than accept delivery, most traders in futures markets choose
A) to make margin payments. B) settlement by offset. C) to mark-to-market. D) to make arbitrage payments.
A manager invests $400,000 in a technology that should reduce the overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . All else equal, if the firm continues its production in the same economic environment, the firms accounting profits should
a. increase b. decrease c. stay the same d. does not affect profits