If a 5 percent increase in income leads to a 15 percent increase in the quantity demanded of a service, then the income elasticity of demand for that service equals 0.33
a. True
b. False
B
Economics
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The demand schedules for such products as eggs, bread, and electricity tend to be
A. relatively elastic. B. perfectly elastic. C. unit-elastic. D. relatively inelastic.
Economics
If the great majority of shocks to our system arise from unpredictable shocks to money demand, the preferred tactic of monetary policy is targeting
a. reserves. b. interest rates. c. M2. d. reserves plus currency.
Economics
Starting a fishing business
a. is safe because the price of fish is stable b. requires little prior knowledge c. involves no significant entry costs d. is a risky way to make a living e. does not involve opportunity costs
Economics
Leverage refers to:
a. an IPO b. Secondary offering c. the ratio of debt to equity d. The derivatives market e. All of the above
Economics