Sally recently got a 15 percent raise. She now purchases 7.5 percent more steak dinners. Sally's income elasticity for steak dinners is:
A. 0.5.
B. 0.75.
C. 1.5.
D. 2.0.
Answer: A
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When the TR and TC curves have the same slope,
A) they are the furthest from each other. B) they are closest to each other. C) they intersect each other. D) profit is negative. E) profit is zero.
In the long run, foreign labor remains cheap when and if
a. it becomes highly efficient and competes successfully internationally. b. countries erect barriers to trade between poor countries. c. productivity increases more rapidly in poor countries than in rich countries. d. it remains inefficient compared to other countries' labor.
The growth rate of potential GDP is the sum of the growth rates of
A. labor force and population. B. labor force and labor productivity. C. labor force and capital stock. D. labor productivity and capital stock.
Which of the following is an example of a good whose price goes down because of improvements in technology?
a) computer printers b) running shoes c) hard-bound books d) typewriters