With an income elasticity of demand of 0.5, cigarettes are an example of
a. a normal good
b. an inferior good
c. irrational demand
d. complements to health care
e. unitary elasticity
A
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If you buy a five-year-old TV from a friend, the amount you paid for the TV is
A) always added to consumption expenditures but not investment. B) always added to investment but not consumption. C) not included in this year's GDP. D) added to investment if the TV is expected to last more than 5 additional years and added to consumption if the TV is expected to last less than 5 additional years. E) included in this year's GDP only if the TV set was manufactured in the United States.
The Rule of 70 is used to
A) estimate how much of an economy's growth rate is due to increases in capital per hour of labor. B) calculate the standard of living. C) calculate the economy's growth rate. D) estimate how long it will take the level of any variable to double.
Refer to Table 2-4. Dina faces ________ opportunity costs in the production of sliders and hot wings
A) constant B) decreasing C) increasing D) negative
The fact that exchange rates are nearly identical in different markets around the world is due to
a. the actions of speculators b. official action by central banks around the world c. the actions of arbitrageurs d. agreement by policy makers of the major industrial countries e. the actions of currency converters