Which of the following must be true if good X is a normal good and income increases?
a. The demand for X will increase, and thus the price and quantity sold and bought will decrease.
b. The demand for X will decrease, and thus the price and quantity sold and bought will decrease.
c. The demand for X will increase, and thus the price and quantity sold and bought will increase.
d. The demand for X will decrease, and thus the price and quantity sold and bought will increase.
e. The demand for X will increase, and thus the price and quantity sold and bought will remain the same.
c
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Give two disadvantages of using an expenditure-based fiscal policy over a taxation-based fiscal policy
What will be an ideal response?
As a general rule of thumb, industries with a Herfindahl index below ________ are considered to be competitive, while those above ________ are considered noncompetitive.
A. 1,800, 1,000 B. 1,000, 1,800 C. 1,000, 3,000 D. 1,800, 3,000