Answer the following statement(s) true (T) or false (F)
1. The Engel curve contains information that is not found in the indifference curve diagram.
2. The Law of demand can only be violated if a good is inferior.
3. All Giffen goods must be inferior goods, but not all inferior goods are Giffen goods.
4. In a two-good world, one good-but not both-can be inferior.
5. An inferior good is one for which the substitution effect is relatively large.
1. false
2. True
3. True
4. True
5. False
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When Tobin's q is greater than one, ________
A) a unit of a firm's stock (equity) is worth more than a unit of the firm's capital B) a new unit of capital has more value than a new unit of stock (equity) C) installed capital is worth less than new capital D) a unit of capital that a firm owns has more value than a unit it might buy
The term "dollarization" refers to the adoption of the U.S. dollar by a foreign country as its currency
a. True b. False Indicate whether the statement is true or false