________: a measure of the relative response of demand to income changes

Fill in the blank(s) with correct word


Income elasticity

Economics

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The food processing industry in Richland accounts for 20% of its GDP

Which of the following will happen if firms in this industry become pessimistic about the future demand for their products? Assume that consumption and government expenditure remains unchanged. A) Richland's unemployment rate will fall. B) Richland's interest rate will increase. C) Richland's inflation rate will increase. D) Richland's GDP will fall.

Economics

Suppose MRTS is not the same across all producers. In this case, the economic outcome is not fully efficient because:

A) exchange is inefficient. B) the use of inputs in production is inefficient. C) the mix of outputs in inefficient. D) none of the above

Economics

All of the following make the demand for labor more elastic EXCEPT

A) greater elasticity of demand for the final product. B) the longer the time period under consideration. C) the smaller the proportion of total costs accounted for by labor. D) the easier it is to substitute another input for labor.

Economics

Which word or phrase indicates that an economist is using positive economics?

a. Bad b. Good c. If-then d. Should

Economics