Answer:
True
Explanation:
this is to ensure deeper understanding.
Answer: Decrease demand for the inferior good
Explanation:
Inferior goods are those goods that care consumed by the consumer when his income is too low. That is to say that the demand for an inferior good is negatively related to the income of the consumer. So, when income of the consumer increases, he will reduce his demand for the inferior good.
So, demand decreases as income increases for an inferior good.
Answer:
b. $250 to GDP
Explanation:
GDP is the value of all the goods and services produced in a country per period. The GDP value communicates economic directions for the country. An increase in its value implies economic growth. When calculating the GDP, economists consider the value of finished consumer goods only.
The steel sold to the bicycle making company will not be considered in GDP. It is a capital good used to make another product. If included, it would result in double-counting as the steel would be counted again as a final product. Only the value for $250 will be included in the GDP as the bicycle is a final product.
Answer:
Diversification serves to reduce portfolio risk. ... Portfolio diversification is a critical part of the investing process because nobody knows how different asset classes, market segments and individual companies will perform over time. For example, so far in 2020 growth stocks have handily outperformed value stocks.
Explanation: