Many economists consider medical care a superior good. Which of the following statements is true regarding a superior good?
a. When the price of a superior good increases, consumers demand more of it.
b. Superior goods are considered necessities.
c. A superior good has an income elasticity of demand less than one.
d. Consumers want more of a superior good regardless of its price.
e. As consumer income increases, a larger percentage of that income is spent on superior goods
e. As consumer income increases, a larger percentage of that income is spent on superior goods
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Given a required reserve ratio of 20 percent, a commercial bank that has received a new deposit of $100 can make additional loans of
A) $400. B) $0. C) $20. D) $80.
Justine is an artist. In 2003, she produced 15 paintings and sold all 15 . In 200 . she produced 14 paintings and sold 11 . In 2005, she produced 16 paintings and sold 18 . Explain how many of Justine's paintings would be counted as part of gross private domestic investment in each of these three years
The demand for a resource is “derived” from the goods and services that the resource is used to produce. Give three examples
Please provide the best answer for the statement.
Which of the following is true about the consumer price index?
A) It is updated continuously to account for the introduction of new goods. B) It accounts for people switching away from goods whose prices have risen. C) It assumes that consumers purchase the same quantity of each product in the market basket each month. D) It accurately reflects quality changes in goods and services over time.