For the same sized substitution effect, own-price demand curves for inferior goods are steeper than own price demand curves for normal goods.
Answer the following statement true (T) or false (F)
True
Rationale: This is true because the substitution and income effects point in the same direction for normal goods -- thus making the slope of the demand curve shallower than it would be in the absence of the income effect (or in the presence of an income effect that points in the opposite direction.)
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Which of the following is a positive economic statement?
A) The standard of living in the United States should be higher. B) The U.S. government should not have bailed out U.S. auto manufacturers. C) If the price of iPhones falls, a larger quantity of iPhones will be purchased. D) The government should revamp the health care system.
If there are 10,000 people in your age bracket, and 10 of them died last year, an insurance company believes that the probability of someone in that age bracket dying this year would be
A) 0. B) .001. C) .0001. D) 1,000.