Economists know that a particular good can be classified as an inferior good if a(n) ________ in buyers' income causes a(n) ________ .
A) increase; increase in demand
B) increase; increase in quantity demanded
C) increase; decrease in demand
D) decrease; decrease in demand
Ans: C) increase; decrease in demand
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Which of the following would shift the supply of Florida Oranges to the left?
a. a hurricane in Florida destroying a major part of the crop b. an increase in the price of water per unit, a major input, used to irrigate the orange trees c. one of the orange grooves shuts down d. all of the above
Other things equal, a decrease in the price level will:
A. shift the aggregate supply curve to the left. B. shift the aggregate demand curve to the left. C. cause a movement up a short-run aggregate supply curve. D. cause a movement down an aggregate supply curve.
To maximize profit, a firm will find the
A. quantity where MR=MC unless P. B. quantity where MR=MC (with no other consideration). C. price where MR=MC. D. quantity where TR=TC.
Imperfect asset substitutability exists
A) when it is possible for the expected returns on two assets to be different. B) when the expected returns on two assets are the same. C) only when one asset is foreign and the other is domestic. D) when there is risk in the foreign exchange market. E) when assets are liquid.