If the income elasticity of demand for a good is positive, the good is a normal good
a. True
b. False
Indicate whether the statement is true or false
True
You might also like to view...
How is a monopolistically competitive firm likely to respond to fluctuations in demand in the short run?
A) by selling more or less at the posted price B) by changing prices C) by reducing menu costs D) by increasing menu costs
Refer to Scenario 17.4. If there is no flood insurance and the flood control system is in place, the expected loss from a flood is
A) $5,000. B) $10,000. C) $100,000. D) $200,000. E) $1,000,000.
The median-voter theorem would suggest the reason politicians go from extreme to moderate positions on an issue over the course of an election is because they are appealing to the:
A. average voter in their party in the primary, and the average of all voters in the general election. B. majority of voters in their party in the primary, and the majority of all voters in the general election. C. median voter in their party in the primary, and the median of all voters in the general election. D. people in their party and opposing party.
How are economists not like mathematicians, physicists, and biologists?
a. They devise theories, collect data, and then analyze these data in an attempt to verify or refute their theories. b. They use models to represent the real world. c. They try to address their subject with a scientist's objectivity. d. They cannot run lab experiments in the same way that other scientists can.