If product Y is an inferior good, an increase in consumer incomes will:
a. Not affect the sales of product Y
b. Shift the demand curve for product Y to the left
c. Result in a surplus of product Y
d. Shift the demand curve for product Y to the right
b. Shift the demand curve for product Y to the left
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What would happen to a government's total debt if it ran a budget deficit?
A) Total debt would increase. B) Spending would increase. C) Total debt would decrease. D) Spending would decrease.
Which of the following can explain the choice to gamble in casinos?
A. Gamblers have risk loving tastes. B. Gamblers have risk-averse but state-dependent tastes. C. The casino is operating at a loss. D. (a) and (b) E. (a) and (c) F. (b) and (c) G. All of the above. H. None of the above.
In constructing the monopolist's input demand curve, which of the statements is FALSE?
A) The demand curve has a negative slope due to the law of diminishing marginal product. B) Marginal revenue is always positive. C) A monopoly restricts output and hires fewer units of labor than a perfectly competitive firm. D) The supply curve a monopoly faces is horizontal because the monopoly is a price taker.
Which of the following statements accurately characterizes American trade during the Revolutionary War?
a. The American colonies actively traded with France, Holland and Spain until 1778, when trade was hampered by British blockades. b. British blockades hampered the trade activities of first Northern and later Southern ports. c. American trade remained below pre-war levels. d. Decreases in imports led to increases in domestic production of textiles, beer and other products. e. Both b and c are correct.