Which of the following items is most likely to be an inferior good?
a. bus tickets
b. airline tickets
c. housing
d. stereo equipment
e. home computers
A
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Suppose a drought resulted in a major reduction in the California lettuce crop. In the market for lettuce
A) the supply curve shifted to the left resulting in a decrease in the equilibrium price. B) the demand curve shifted to the right resulting in an increase in the equilibrium price. C) the demand curve shifted to the left resulting in a decrease in the equilibrium price. D) the supply curve shifted to the left resulting in an increase in the equilibrium price.
Effective, stable leadership is essential to:
A. discourage foreign direct investment from taking hold in a country. B. increasing population size. C. increasing human capital. D. economic growth.