Jen considers smoking an inferior good. In other words, for Jen to quit smoking, she would require a ...

Jen considers smoking an inferior good. In other words, for Jen to quit smoking, she would require a significant increase in income.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

A firm experiencing economic losses could be earning accounting profits:
 a. If implicit costs are greater than zero.
  b. If implicit costs are equal to zero.
 c. If implicit costs are less than zero.
 d. In none of the above scenarios.

QUESTION 3

All taxes distort market decisions, affecting the buying and selling of goods and services.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

An inferior good or service is any good or service for which an increase in income causes a decrease in demand.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 5

If opportunity costs are ignored:
 a. all firms will show accounting profits.
 b. all firms will appear to incur economic losses.
 c. firms will still make profit-maximizing production decisions.
  d. firms experiencing economic losses may appear to be profitable.

QUESTION 6

Offshoring does not affect the percentage of U.S. workers employed in manufacturing.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 7

If butter has an income elasticity equal to 0.75, then butter is an inferior good.
 a. True
  b. False
  Indicate whether the statement is true or false