Giffen goods are
a. normal goods for which the income effect dominates the substitution effect.
b. normal goods for which the substitution effect dominates the income effect.
c. inferior goods for which the income effect dominates the substitution effect.
d. inferior goods for which the substitution effect dominates the income effect.
c
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Relative Importance
What will be an ideal response?
External shocks include all of the following except
A. Wars. B. Population growth. C. Natural disasters. D. Terrorist attacks.
The difference between personal income and disposable personal income is that
A. personal income taxes are not included in disposable personal income. B. disposable personal income includes only the funds available to spend on non-necessities. C. personal income does not include transfer payments, such as Social Security payments or welfare payments and disposable personal income includes them. D. personal income includes personal income taxes and indirect business taxes, which are not included in disposable personal income.
The Lawn Ranger, a landscaping company, has total costs of $5,000 and total fixed costs of $3,000. The Lawn Ranger's total variable costs are
A. $2,000. B. $3,000. C. $5,000. D. indeterminate because the firm's output level is not known.