Difference between normal and inferior goods
Difference between normal goods and inferior goods. Give illustration.
Expert
Normal Goods: These are goods that demand for which increases as income of the buyer rises. There is a positive relationship among income and demand or the income effect is positive. Illustration: Rice and WheatInferior Goods : These are goods that demand for which decreases as income of buyer rises. Therefore, there is negative relationship among income and demand orthe income effect is negative. Illustration: coarse grain and coarse cloth.
Describe three ways to finance corporate activity. Make a case that stocks are more risky for the financial investor than are bonds?
Briefly explain how the competitive market economy will make the needed adjustments to reestablish an efficient allocation of society’s scarce resources?
Describe the merits of “roundabout” production? Describe the term “division of labor”?
The market system tends to mainly beneficial allocating resources and distributes goods while: (1) the distributions of wealth and resource ownership are extensively perceived as equitable. (2) markets are extremely competitive. (3) goods are rival an
Successful speculation tends to: (1) generate inflationary pressure. (2) assist stabilize relative prices. (3) reduce the incomes of the eventual producers of goods. (4) make relative prices more volatile. (5) increase the risk born through the eventu
Question: To determine the real exchange rate, what two pieces of information do you need in addition to the nominal exchange rate? Answer: Q : What are economic resources What are What are economic resources? What are the major functions of the entrepreneur?
What are economic resources? What are the major functions of the entrepreneur?
How important is international trade to the U.S. economy? In terms of volume, does the United States trade more with industrially advanced economies or with developing economies? What country is the United States’ most important trading partner, quantitati
Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good. Answer:
Elucidate: Competition and the “Invisible Hand”?
18,76,764
1922999 Asked
3,689
Active Tutors
1438410
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!