Policies based on normative economic ideas tend to increase economic efficiency and improve equity

If income rises and a good is inferior, then demand for that good will decrease

a. True b. False

Which of the following is not a problem associated with barter?

a) tax rates are generally higher on barter than on monetary transactions b) the quality of goods used in barter may differ across time and place c) transporting goods for use in barter is inconvenient d) goods used in barter may not be easily divisible e) barter requires a double coincidence of wants