Long-distance travel by bus is an inferior good. As people's incomes increase and other things remain the same, you predict that the
A) price of long-distance travel by bus will fall and the demand for long-distance travel by bus will increase.
B) price of long-distance travel by bus will fall.
C) demand for long-distance travel by bus will decrease and the price will rise.
D) demand for long-distance travel by bus will increase as the price of long-distance travel by bus falls.
B
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The forecasting technique which attempts to forecast short-run changes and makes use of economic indicators known as leading, coincident or lagging indicators is known as:
a. econometric technique b. time-series forecasting c. opinion polling d. barometric technique e. judgment forecasting
If a nation does not have an absolute advantage in producing anything, it
a. has no comparative advantage either. b. will have a comparative advantage in the activity in which it is least inefficient. c. will try to get along without trade. d. will export raw materials and import finished products.