Sarah gets a salary increase of 20 percent. Before her raise, she purchased 5 pounds of hamburger and 1 pound of beef stew a month. After her raise, she consumes 2 pounds of hamburger and 3 pounds of beef stew a month.
If everything else is held constant, we know that A) hamburger is an inferior good and beef stew is a normal good for Sarah.
B) hamburger is a normal good and beef stew is an inferior good for Sarah.
C) both hamburger and beef stew are normal goods for Sarah.
D) both hamburger and beef stew are inferior goods for Sarah.
Question 2
Economic theory predicts that people make choices in a manner that
A) makes them well liked by others.
B) makes them better off.
C) reflects the fact that resources are unlimited.
D) shows that they do not respond to monetary incentives.
Mother giraffe and calves feeding. It is mostly the females that raise young, and they may gather in
China’s 8% annual increase in oil consumption
The recent mass upheavals in Tunisia, Egypt, Libya, Yemen, and Syria gave political scientists a cha
The steel lamination used in an E coil helps increase the magnetic field strength, which helps the ...
Daniel's Enterprises has a beta of 1.98 and a growth rate of 12 percent. The stock is ...
A government of Ontario 364-day T-bills with a face value of $50 000 were purchased on January ...