Which of the following is most likely to have an income elasticity of demand that is less than 1?
A) movies
B) airline travel
C) foreign travel
D) food
E) restaurant meals
D
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Refer to the graph shown.
A decrease in production costs is likely to cause a movement from ________.
A. point C to D B. point B to A C. point B to D D. point C to A
Households receive their income in the circular flow diagram by
A) obtaining dividends and interest payments. B) selling the use of their property. C) selling resources they own to business firms. D) selling the goods they produce at home.
Positive statements can contain
A) opinions and conditions. B) facts and predictions. C) a mixture of facts and opinions. D) logical arguments mixed with statements of opinion.
Why does increasing employment not necessarily increase living standards?
a. Productivity always increases as employment increases. b. Living standards and employment are always positively related. c. Increasing employment may not be accompanied by higher real wages d. There is no upper limit to labor force participation. e. Real wages are not adjusted for inflation.