An inferior good is one
A. produced by American industries.
B. whose quantity demanded falls when the purchaser’s income rises.
C. ordinarily bought by college students from college-town merchants.
D. suitable for a garage sale.
Answer: B
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For which of the following projects would it likely be most difficult to acquire 1,000 acres of land?
A) growing wheat B) building an amusement park C) building storage sheds D) digging wells
The operation of supply and demand should be thought of as a process
A) for establishing consumer sovereignty. B) for increasing individual liberty. C) for maximizing social welfare. D) for maximizing total output. E) of mutual accommodation.
A monopolistically competitive firm is producing an output level where marginal revenue is greater than marginal cost. What should this firm do to increase its profit or reduce its losses?
A) The firm should increase its implicit costs. B) The firm should lower its price. C) The firm should decrease its fixed costs. D) The firm should raise its price.
Once the Phillips curve has shifted up, the economy is ________ because ________
A) better off; every unemployment rate becomes associated with a higher inflation rate B) better off; every inflation rate becomes associated with a lower unemployment rate C) worse off; every inflation rate becomes associated with a higher unemployment rate D) worse off; every unemployment rate becomes associated with a lower inflation rate