If real income rises in the economy and, at the same time, productivity in the agriculture sector rises, too, then it follows that the demand for food will
A) rise (assuming that income elasticity of demand for food is greater than 1 ) and the supply of food will remain constant.
B) rise (assuming that income elasticity of demand for food is greater than 0 ) and the supply of food will increase, too.
C) fall (assuming that income elasticity of demand for food is greater than 1 ) and the supply of food will fall, too.
D) fall (assuming that income elasticity of demand for food is equal to 1 ) and the supply of food will rise.
E) none of the above
B
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If the savings rate in an economy is 30%, and the level of investment in the economy is $400, the GDP of the economy must be:
A) $1,900.25. B) $1,111.22. C) $1,333.33. D) $1,750.50.
The Land Ordinances of 1785 and 1787 established property rights in land that provided for all of the following except
(a) Perpetual ownership, if desired (b) Direct inheritance (c) Complete freedom to sell as desired (d) Required inheritance through the principle of primogeniture
On a graph showing the influence of automatic stabilizers on the economy, government expenditures on transfer payments and real GDP have a(n):
A. direct relationship as shown by an upward-sloping line G. B. direct relationship as shown by a downward-sloping line G. C. inverse relationship as shown by an upward-sloping line G. D. inverse relationship as shown by a downward-sloping line G.
Holding demand constant, a reduction in supply leads to
A) lower prices and higher quantity demanded. B) lower prices and lower quantity demanded. C) higher prices and higher quantity demanded. D) higher prices and lower quantity demanded.