A good is normal if the sign on the income elasticity formula is
A. Positive.
B. Negative.
C. Greater than 1.
D. Less than 1.
Answer: A
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Whenever two individuals trade with each other, one will benefit and the other will lose.
Answer the following statement true (T) or false (F)
The real exchange rate is:
A) how much of a foreign currency you can buy with the domestic currency. B) foreign CPI divided by the domestic CPI. C) the price of foreign goods in terms of domestic goods. D) the price of foreign goods in dollars. E) the domestic currency divided by the price level.
Which of the following is one of the main revenue sources for state and local governments?
a. income taxes b. sales taxes c. estate taxes d. excise taxes
A car salesperson gives you four alternative ways to pay for your car. The first is to pay $18,000 today. The second is to pay $19,000 one year from today. The third is to pay $20,300 two years from today. The fourth is to pay $21,500 three years from today. If the interest rate is 6 percent, which payment option has the lowest present value and which has the highest?
a. The first is lowest; the second is highest. b. The second is lowest; the third is highest. c. The third is lowest; the fourth is highest. d. The fourth is lowest; the first is highest.