An inferior good
a. has a negative income elasticity.
b. is one where the demand curve shifts to the left when income goes up.
c. exists only in theory.
d. is a low-quality good.
e. Both a and b are true.
E
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In order to increase the capital stock, society must divert ________ that could be otherwise used to increase the supply of ________.
A. money; labor. B. money; consumer goods C. credit; labor D. resources; consumer goods
A currency depreciation in the foreign exchange market will ________.
A. encourage foreign travel by the citizens of the country whose currency has depreciated B. discourage exports from the country whose currency has depreciated C. discourage imports into the country whose currency has depreciated D. encourage imports into the country whose currency has depreciated
Happy Feet wants to prevent Best Nails from entering the nail salon market. If Happy Feet expands its capacity, the expansion can lead to all of the following except which one?
A) increase Happy Feet's profit-maximizing quantity B) decrease Happy Feet's profit-maximizing price C) increase Happy Feet's marginal cost D) decrease Best Nails' profit from entering the market
Suppose that at current consumption levels an individual's marginal utility of consuming an extra hot dog is 10 whereas the marginal utility of consuming an extra soft drink is 2 . Then the MRS (of soft drinks for hot dogs)—that is, the number of hot dogs the individual is willing to give up to get one more soft drink—is:
a. 5. b. 2. c. 1/2. d. 1/5.