The sign of the price elasticity coefficient for a normal good will:
a. always be negative.
b. always be positive.
c. be positive if demand is elastic but negative if demand is inelastic.
d. be positive if demand is inelastic but negative if demand is elastic.
b
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In the national income accounts, the purchase of a new house counts as
A) consumption expenditure. B) investment. C) a transfer. D) an addition to inventory.
True or false? The Edgeworth box version of inter-personal trade requires the individuals to be in close proximity of one another
A) True, that way they can see each other's endowments and prices. B) False, begin in close proximity is not required for mutually beneficial trade to occur in the Edgeworth box. C) True, the Edgeworth box only works when there folks see "eye-to-eye." D) False, although prices are only valid if they are communicated in person.
If an increase in the price of Product X causes an increase in the demand for Product Y, we can conclude that: a. Products X and Y are complements. b. Products X and Y are substitutes
c. Products X and Y are normal goods. d. The price of Product Y will decrease.
The country of Eggville uses eggs as its official form of currency. All prices in Eggville are shown in terms of eggs, and residents carry around baskets of eggs to buy goods and services. Residents, however, cannot save eggs because they end up spoiling. Which functions of money do eggs serve?
a) Medium of exchange and store of value. b) Unit of account and store of value. c) Medium of exchange and unit of account. d) Medium of exchange, unit of account, and store of value.