An increase in income will lead to an increase in demand for inferior goods.

a. true
b. false


Ans: b. false

Economics

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In a production possibilities frontier model, a point ________ the frontier is productively inefficient

A) outside B) at either intercept of C) inside D) along

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The neoclassical growth theory implies that

A) the marginal product of capital is low in poor countries. B) the rate of return on capital is low in poor countries. C) there should be large flows of capital from rich countries to poor countries. D) all of the above.

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Points that lie beneath the production possibilities curve are:

A. unattainable and inefficient. B. attainable but inefficient. C. unattainable but efficient. D. attainable and efficient.

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the multiplier is a value between zero and one

a. true b. false

Economics