Which kind of good might not be bought when prices rise?
(A) Substitute
(B) Inferior good
(C) Complement
(D) Luxury
Ans: (D) Luxury
Economics
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In comparison to a government that runs a balanced budget, when the government runs a budget deficit
A) business investment will fall. B) the equilibrium interest rate will fall. C) household savings will fall. D) none of the above
Economics
Which of the following statements is false?
A. One of the basic principles capitalism is based on is to "trust no one." B. To have real competition in a market economy no one business should be able to have any influence over price. C. A basic trade-off exists between the goals of equity and efficiency for a society. D. The forces of supply and demand will NOT automatically lead to an equitable distribution of income.
Economics