When people’s income increases, demand for science fiction novels increases. The novels are
a. an inferior good.
b. substitutes.
c. a normal good.
d. regular goods.
c. a normal good.
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When real GDP falls for two consecutive quarters the economy is in a
A) peak. B) trough. C) recession. D) depression.
A perfectly competitive firm maximizes its profit by producing at the point where
A) total revenue equals total cost. B) marginal revenue is equal to marginal cost. C) total revenue is equal to marginal revenue. D) total cost is at its minimum. E) total revenue is at its maximum.
Suppose the U.S. GDP growth rate is slower relative to other countries' GDP growth rates. This will
A) move the economy up along a stationary aggregate demand curve. B) shift the aggregate demand curve to the left. C) shift the aggregate demand curve to the right. D) move the economy down along a stationary aggregate demand curve.
Based on Table 4.1, according to the Heckscher-Ohlin Theorem, U.S. exports should be goods that
A) intensively use labor input. B) intensively use capital input. C) use capital and labor in about equal proportions. D) use either labor or capital input, depending on the good. E) Not enough information to tell.