If a good is inferior, then an increase in income will cause the demand curve to
A. shift left.
B. stay the same.
C. shift right.
D. rotate inward.
Answer: A
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Which of the following activities does NOT diversify risk?
A) investing in real estate in various states across the United States. B) writing earthquake insurance policies for the entire Western United States C) writing hurricane insurance policies only in Florida D) purchasing the stock of a variety of different companies
Unemployment compensation is an example of
A) a subsidized service. B) a regressive income program. C) a Social Security benefit. D) an income maintenance program.
The trade-creation effect refers to:
a. the outcome of a preferential trade agreement that reduces economic efficiency by shifting production to a higher-cost producer. b. the effect of an increase in the quantity of imports relative to the effect of a tariff applicable to all imports. c. the outcome of a preferential trade agreement that allows a country to obtain goods at a lower cost than is available at home. d. the effect of a diversion of production to a country that has comparative advantage due to a free trade agreement. e. the effect of a decrease in the quantity of exports relative to the effect of a subsidy applicable to all exports.
The fact that different countries experience different standards of living is largely explained by differences in those countries'
a. populations. b. productivity levels. c. locations. d. None of the above is correct. Economists are puzzled by differences in standards of living around the world.