Suppose you believe that plaid flannel shirts are an inferior good, and want to test this with economic data. You expect to find that the income elasticity for plaid flannel shirts is:
A. less than zero.
B. close to zero.
C. greater than zero, but less than one.
D. greater than one.
Answer: A
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If the pound-dollar exchange rate changes from £0.60 per dollar to £0.65 per dollar, then the pound has ________ against the dollar and the dollar has ________ against the pound
A) depreciated; depreciated B) appreciated; depreciated C) appreciated; appreciated D) depreciated; appreciated
Which of the following statements is true?
a. A sales tax on food is a regressive tax. b. The largest source of federal government tax revenue is individual income taxes. c. The largest source of state and local governments tax revenue is sales and excise taxes. d. All of the above are true. e. None of the above are true.
If Bolivia can produce 6 calculators or 3 televisions in a day, and Argentina can produce 4 calculators or 12 televisions in a day, then Bolivia would be willing to trade 1 calculator for 1 television with Argentina
a. True b. False Indicate whether the statement is true or false
Which of the following statements about ticket scalping is correct?
A. On economic grounds, ticket scalping does more harm than good among those who engage in it B. Ticket scalping occurs when the event organizers set the formal price of the tickets higher than the equilibrium price C. The existence of a scalpers' market could mean that the event sponsors/organizers are getting lower sales revenues that what they could have gotten at equilibrium D. Ticket scalping obviously benefits the sellers/scalpers, but is often harmful to the ones buying the tickets