What is the difference between a normal good and an inferior good? How does this relate to the demand curve?
What will be an ideal response?
A normal good is one for which demand increases as income increases, and an inferior good is one for which demand decreases as income decreases. Hence, an increase in income causes the demand curve for a normal good to shift to the right, showing an increase in demand; and an increase in income causes the demand curve for an inferior good to shift to the left, showing a decrease in demand.
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Which of the following statements is true of the U.S. economy before 1800?
A) The U.S. economy was growing at an average rate of more than 6% per annum. B) There were no major achievements in arts. C) Sustained economic growth was rare or absent in the U.S. economy. D) There were no major achievements in science and technology.
Trade is only beneficial if a nation has an absolute advantage in producing all products
Indicate whether the statement is true or false