"As income rises, the demand for most goods also rises." This statement
a. is inconsistent with the law of demand
b. suggests that many goods are inferior goods
c. shows that the quantity demanded is inversely related to price
d. suggests that most goods are normal goods
e. does not apply to goods traded in competitive markets
D
You might also like to view...
Banks use credit rationing rather than simply raising the interest rate charged borrowers with higher default risks because
A) of fear of adverse selection problems. B) of interest rate ceilings in many states. C) of fear of offending the loan applicants. D) use of credit rationing is encouraged by the Federal Reserve.
Refer to the information provided in Figure 31.1 below to answer the question(s) that follow.
Figure 31.1Refer to Figure 31.1. A decrease in the labor force will cause a
A. shift from ppf2 to ppf1. B. movement from Point B to Point A. C. movement from Point A to Point B. D. shift from ppf2 to ppf3.