The law of demand implies that the quantity demanded of a commodity is inversely related to income, assuming other things that may affect demand remain the same.
a. true
b. false
Answer: b. false
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According to the equation of exchange, the
A) quantity of money divided by the inflation rate equals real GDP. B) quantity of money minus the velocity of circulation equals real GDP minus the price level. C) quantity of money multiplied by the velocity of circulation equals nominal GDP. D) velocity of circulation is always smaller than the inflation rate. E) quantity of money multiplied by the inflation rate equals nominal GDP.
Automatic stabilizers will shift the government budget toward
a. a surplus during both expansions and contractions. b. a deficit during both expansions and contractions. c. a surplus during an expansion and a deficit during a contraction. d. a surplus during a contraction and a deficit during an expansion.
A country undertakes a revaluation in order to:
A. increase its net exports. B. decrease its net exports. C. lower the value at which its currency is pegged. D. move to a flexible exchange rate system.
Refer to the information provided in Table 8.4 below to answer the question(s) that follow. Table 8.4ProduceUsing TechniquesUnits of Variable KInputs L1 unit of outputA4 4?B2 6????2 units of outputA 7 6?B410????3 units of outputA 8 6?B 6 11Refer to Table 8.4. Assume that the relevant time period is the short run. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, the average total cost of producing two units of output is
A. $10. B. $20. C. $45. D. $50.