In the above figure, the shift from point C to point B might be the result of
A) an increase in the price level.
B) a decrease in the price level.
C) a decrease in government expenditures.
D) an increase in the quantity of money.
C
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An inferior good is one
A. produced by American industries. B. whose quantity demanded falls when the purchaser’s income rises. C. ordinarily bought by college students from college-town merchants. D. suitable for a garage sale.
Rivalry among firms and individuals for sales to consumers
a. is the natural regulator that makes a market system work. b. is known as competition. c. regulates the allocation of resources in a market system. d. All of these.
In economic terminology, an inferior good is a good
A) that no one will purchase. B) that doesn't work properly. C) that has no monetary value. D) for which demand increases as income decreases.
Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had flexible exchange rates, these flows would have had the following effect on the reserves account and monetary base
a. Reserves account would rise and monetary base would fall. b. Reserves account would not change and monetary base would not change. c. Reserves account would fall and monetary base would not change. d. Reserves account would fall and monetary base would fall. e. Reserves account would fall and monetary base would rise.