If we wanted to prove that macaroni is an inferior good, we would test the __________ of macaroni and get a __________
a. cross-price elasticity; negative number
b. income elasticity; number less than 1
c. income elasticity; positive number
d. price elasticity of demand; number greater than negative 1
e. income elasticity; negative number
E
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Hummel is a line of figurines based on the artistic style of German nun Maria Innocentia Hummel and have become a collector's item. The Hummel figurines are almost uniformly "cute
" Lukas, Felix, Anya, and Hannah sell Hummel figurines through the internet. Their willingness to sell price for one figurine is: Lukas $240, Felix $180, Anya $150, Hannah $130. Suppose the price of a Hummel figurine is $150, who will sell their figurine? A) Anya and Hannah B) Lukas, Felix, and Anya C) Felix, Anya, and Hannah D) Hannah
When households hold money for unplanned expenditures and emergencies, it is called
A) the speculative demand for money. B) the transactions demand for money. C) the irrational demand for money. D) the precautionary demand for money.
Public saving equals:
a. TR - G - T b. Y - C - T + TR c. Y + C + T + TR d. T - G - TR
A disadvantage of the partnership form of business organization is
A. its limited liability. B. that it can issue only one class of stock. C. its limited access to capital. D. that the owners must fight a lot of red tape to form the firm.