What is an inferior good?
A) a product of low quality that we do not want to purchase
B) a product for which demand increases when income increases, and demand decreases when income decreases
C) a product for which demand increases when income decreases, and demand decreases when income increases
D) a product that is complementary
E) a product that is a substitute for another, better good
C
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Methods of financing government spending are described by an expression called the government budget constraint, which states the following
A) the government budget deficit must equal the sum of the change in the monetary base and the change in government bonds held by the public. B) the government budget deficit must equal the difference between the change in the monetary base and the change in government bonds held by the public. C) the government budget deficit must equal the difference between the change in the monetary base and the change in government bonds held by the Fed. D) the government budget deficit must equal the difference between the change in the monetary base and the change in government bonds held by the Treasury.
Economies of scale create __________ for existing firms, which in turn creates __________ for potential entrants
a. b and e b. problems; opportunities c. savings; costs d. losses; profits e. advantages; disadvantages