If macaroni and cheese is an inferior good, falling incomes will tend to:
A. lower its price but raise its quantity.
B. put upward pressure on its price and quantity.
C. put downward pressure on its price and quantity.
D. raise its price but lower its quantity.
Answer: B
You might also like to view...
The combination of pork barrel spending and logrolling leads to:
A. the quick termination of projects that are wasteful. B. the largest net benefit for society. C. inefficiently large government spending. D. under provision of public goods.
The Reagan tax cuts of the 1980s
A. had not impact on the budget deficit. B. decreased the budget deficit. C. increased the budget deficit. D. initially decreased the deficit but later increased it.
Picture an economy that is in general equilibrium. What would happen if the natural rate of unemployment were to experience a decrease?
A) according to the Phillips curve, the ensuing negative unemployment gap would exert inflationary pressures B) according to Okun's Law, the ensuing negative unemployment gap would be consistent with a positive output gap C) according to the AD-AS framework, the LRAS curve would shift to the right and the ensuing output gap would have to be closed by subsequent rightward shifts in the AS curve to a lower equilibrium level of inflation D) all of the above E) none of the above
A skilled worker is an example of:
a. unproductive resources. b. land resources. c. labor resources. d. capital resources. e. both labor and capital resources.