A good is considered normal when its income elasticity of demand is ___ and inferior when the its income elasticity of demand is ___
a. Greater than zero, less than zero.
b. Less than zero, greater than zero.
c. Greater than one, less than one.
d. Less than one, greater than one.
a
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Labor unions benefit their members by
A) distributing income more equally among workers. B) helping them compete more effectively against employers. C) increasing the number of job opportunities available for employees. D) preventing or controlling competition among workers. E) promoting the trade they represent to assure an adequate supply of skilled workers.
Every international transaction automatically enters the balance of payments
A) once either as a credit or as a debit. B) twice, once as a credit and once as a debit. C) once as a credit. D) twice, both times as debit. E) the times, once as a credit, onces as a debit, and once as an exchange.
If the government removes a binding price ceiling from a market, then the price received by sellers will
a. decrease, and the quantity sold in the market will decrease. b. decrease, and the quantity sold in the market will increase. c. increase, and the quantity sold in the market will decrease. d. increase, and the quantity sold in the market will increase.
Notice the situation that results when the price of coffee is $2 a pound. Which of the following would establish equilibrium?
a. Keep the price the same; increase the quantity supplied to 6,000 pounds.
b. Increase the price to $4; keep the quantity supplied the same.
c. Decrease the price to $1; decrease the quantity supplied to 2,000 pounds.
d. Increase the price to $3; increase the quantity supplied to 5,000 pounds.