If a consumer purchases more of good X and good Y after her income increases, then neither good X nor good Y is an inferior good for her
a. True
b. False
Indicate whether the statement is true or false
True
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
The firm learns that the probability of launch estimated for the voice activated software was too optimistic and instead is actually 65%. Is it still worth for the company to develop the simplified software?
a. No, because the expected return is lower b. No, because the expected return is higher c. Yes, because the expected return is higher d. Yes, because the expected return is lower
If the demand faced by a firm is elastic, selling one less unit of output will:
a. increase revenue. b. decrease revenue. c. keep revenues constant. d. decrease price.
Use the following graph to answer the next question.
In the above graph it is assumed that investment, net exports, and government expenditures
A. vary inversely with real GDP. B. are all increasing. C. vary directly with real GDP. D. are independent of real GDP.