Demand is income elastic if
A) a large percentage increase in income results in a small percentage increase in quantity demanded.
B) a small percentage increase in income results in a large percentage increase in quantity demanded.
C) an increase in income does not affect the quantity demanded.
D) the good in question has close substitutes.
B
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Adam Smith argued that government's role in society would be to do absolutely nothing. True or False.
Use the following information to answer the next question.The following items describe the responses of four individuals to a Bureau of Labor Statistics (BLS) survey of employment.Mollie just graduated from college and is now looking for work. She has had three job interviews in the past month but still has not gotten a job offer.George used to work in an automotive assembly plant. He was laid off six months ago as the economy weakened. He expects to return to work in a few months when national economic conditions improve.Jeanette worked as an aircraft design engineer for a company that produces military aircraft until she lost her job last year when the Federal government cut defense spending. She has been looking for similar work for a year but no company seems interested in
her aircraft design skills.Ricardo lost his job last year when his company downsized and laid off middle-level managers. He tried to find another job for a year but was unsuccessful and quit looking for work.Which individual would be classified as a discouraged worker? A. Jeanette B. Ricardo C. George D. Mollie
Which of the following would most likely induce the Federal Reserve to conduct expansionary monetary policy? A significant decrease in
A) business taxes. B) oil prices. C) investment spending. D) income tax rates.
Refer to the normal-form game of price competition in the payoff matrix below.Firm AFirm B??Low PriceHigh Price?Low Price0,050,-10?High Price-10,5020,20Suppose that firm A deviates from a trigger strategy to support a high price. What is the present value of A's payoff from cheating?
A. 50 B. 30 C. 70 D. 20