Sally recently got a 15 percent raise. She now purchases 7.5 percent more steak dinners. Sally's income elasticity for steak dinners is:
a. 0.5.
b. 0.75.
c. 1.5.
d. 2.0.
a
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The rule of rational choice suggests that you will engage in more of an activity if: a. the total benefit from that activity exceeds the total cost of the activity
b. the total cost from that activity exceeds the total benefit of the activity. c. the additional cost incurred as a result of the activity exceeds the additional benefit received. d. the additional benefit received as a result of the activity exceeds the additional cost incurred.
Governments may attempt to protect dairy farmers from low milk prices by:
A. reducing subsidies on the price of milk. B. increasing taxes on dairy farmers. C. setting a minimum price on milk. D. banning the hoarding of milk by households.
The real interest rate is calculated by subtracting inflation from the nominal interest rate
a. True b. False Indicate whether the statement is true or false
Firms operating in competitive markets have little choice but to innovate
a. True b. False Indicate whether the statement is true or false