If there is an increase in income, which of the following is true?
a. The demand for complementary goods decreases.
b. The demand for substitute goods decreases.
c. The demand for normal goods decreases.
d. The demand for normal goods increases.
e. The supply for all goods decreases.
D
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In the year 2012, Shinzo Abe became prime minister of Japan, promising bold policies to improve Japan's economy. What was the focus of his policies and how did they affect Japan's trade position?
What will be an ideal response?
Marginal factor cost is
A) the change in total costs due to a one-unit change in the quantity of the good produced. B) the change in total costs due to a one-unit increase in the variable input. C) the change in the price of an input when an additional unit of the input is hired. D) the marginal cost of changing the rate of production in the long run.