A good for which demand decreases when income increases is known as a(n) ________ good
A) normal
B) inferior
C) substitute
D) complementary
B
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A firm will continue to purchase and use land until the:
A) value of marginal product of land equals the price of land. B) value of average product of land equals the marginal product of land. C) value of marginal product of land equals the marginal product of labor. D) value of marginal product of land equals the marginal product of capital.
Suppose that when the price of hamburgers increases, the Ruiz family increases their purchases of hot dogs. To the Ruiz family,
A) hamburgers and hot dogs are normal goods. B) hamburgers and hot dogs are substitutes. C) hamburgers and hot dogs are complements. D) hamburgers and hot dogs are inferior goods.
Correcting a market with an externality through taxation creates ___________ total surplus compared to correcting it through a quota.
A. more B. less C. the same D. Any of these statements could be true depending on whether the tax is imposed on the buyer or seller.
Economists place cartels among the least-desirable forms of market organization.
Answer the following statement true (T) or false (F)