Which goods would usually be an inferior good?

a. Steak
b. Generic beer
c. Theater tickets
d. French wines

Answer: b. Generic beer

Economics

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Suppose a firm uses land, labor, and capital for its production process. If it is renting the equilibrium quantity of all three factors of production, then which of the following conditions will hold?

A) Marginal product from the last dollar spent on land = Marginal product from last dollar spent on labor > Marginal product from the last dollar spent on capital B) Marginal product from the last dollar spent on land > Marginal product from last dollar spent on labor > Marginal product from the last dollar spent on capital C) Marginal product from the last dollar spent on land > Marginal product from last dollar spent on labor = Marginal product from the last dollar spent on capital D) Marginal product from the last dollar spent on land = Marginal product from last dollar spent on labor = Marginal product from the last dollar spent on capital

Economics

If a decrease in the price of good A causes an increase in the demand for good B, then A and B must be complements

a. True b. False

Economics