A good with an income elasticity of 0.4 is:
A. a luxury good.
B. a normal good.
C. an inferior good.
D. a substitute good.
B. a normal good.
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Why is a guaranteed-income program based on the principle of selectivity?
If real GDP in a year was $3,668 billion and the price index was 112, then nominal GDP in that year was approximately ________.
A. $3,925 billion B. $3,846 billion C. $4,108 billion D. $4,379 billion
Someone who turns down an opportunity to purchase a Bible for $5 and then immediately pays $5 to attend a movie thereby expects to obtain more satisfaction from seeing the movie than from
A) cultivating the spiritual life. B) deepening his religious faith. C) owning the Bible just offered to him. D) reading the Bible.
From the Hotelling rule, we would expect that a perfectly competitive industry selling an exhaustible resource would
A) sell more of it than a monopolist would in each period. B) sell it all at once. C) sell less of it than a monopolist would in each period. D) not sell it. E) not sell it unless interest rates were low.