Danita rescues dogs from her local animal shelter. When Danita's income rises by 7 percent, her quantity demanded of dog biscuits increases by 12 percent. For Danita, the income elasticity of demand for dog biscuits is
a. negative, and dog biscuits are a normal good.
b. negative, and dog biscuits are an inferior good.
c. positive, and dog biscuits are an inferior good.
d. positive, and dog biscuits are a normal good.
d
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Given its production possibilities curve, the optimal combination of outputs for a society: a. is beyond the production possibilities curve
b. is at the midpoint of the production possibilities curve. c. is inside the production possibilities curve. d. depends on the preferences of that society.
If the U.S. inflation rate falls relative to the Mexican inflation rate, which of the following will happen in the market for pesos?
a. A rightward shift of the demand curve, a leftward shift of the supply curve, and an appreciation of the peso b. A leftward shift of the demand curve, a rightward shift of the supply curve, and an appreciation of the peso c. A leftward shift of the demand curve, a leftward shift of the supply curve, and a depreciation of the peso d. A rightward shift of the demand curve, a rightward shift of the supply curve, and an appreciation of the peso e. A leftward shift of the demand curve, a rightward shift of the supply curve, and a depreciation of the peso.
Some antitrust laws address situations involving _______________, where even though there are no outright agreements to control prices or production, the result might still be to reduce competition.
a. restrictive practices b. mergers and acquisitions c. price wars d. union contracts
Suppose the federal funds rate is 5 percent. If the Fed decides to increase the target for the federal funds rate from 5 percent to 6 percent, it could take:
A. an offensive action and reduce reserve requirements. B. an offensive action and raise reserve requirements. C. a defensive action and raise reserve requirements. D. a defensive action and reduce reserve requirements.