Compared to higher-income families, low-income families would demand proportionately more of which of the following kinds of goods?
a. Luxury goods.
b. Substitute goods.
c. Normal goods.
d. Inferior goods.
d
You might also like to view...
Which of the following statements about the ripple effects of monetary policy is FALSE? Monetary policy can
A) raise the federal funds rate, thereby decreasing the quantity of money, raising the real interest rate, and decreasing investment. B) lower the federal funds rate, thereby increasing the supply of loanable funds, and lowering the exchange rate. C) lower the federal funds rate, thereby lowering the real interest rate and increasing aggregate demand. D) raise the federal funds rate and shift the aggregate demand curve leftward. E) raise the federal funds rate, thereby raising the real interest rate and increasing potential GDP.
Bill can cook dinner in 45 minutes and mow the lawn in 1.5 hours. Eileen can cook dinner in 1.5 hours and mow the lawn in 2 hours. Which of the following statements is correct?
a. Bill has both an absolute advantage and a comparative advantage in cooking dinner. b. Bill has both an absolute advantage and a comparative advantage in mowing the lawn. c. Eileen has both an absolute advantage and a comparative advantage in cooking dinner. d. Eileen has both an absolute advantage and a comparative advantage in mowing the lawn. e. Bill has the comparative advantage in both cooking dinner and mowing the lawn.