For a good such as food, the income elasticity is likely
A) negative.
B) equal to zero.
C) positive and less than one.
D) positive and greater than one.
E) undefined because people always buy the same amount of food.
C
You might also like to view...
If green bikes and brown bikes are perfect substitutes, the corresponding indifference curves
A) are horizontal. B) intersect each other. C) are vertical. D) have constant slope.
U.S. potential GDP is the value of the goods and services produced in the United States ________
A. in the reference base year B. when the U.S. unemployment rate is zero C. when the U.S. economy is at full employment D. when the U.S. inflation rate is zero
In the figure above, the price of bonds would fall from P2 to P1 if
A) there is a business cycle recession. B) there is a business cycle expansion. C) inflation is expected to increase in the future. D) inflation is expected to decrease in the future.
An example of a sunk cost would be:
A. the price of a lift ticket you bought and used to ski the whole day. B. the price of a lift ticket you bought and used for 1 run before you fell and broke your ankle. C. the nonrefundable deposit you put on your vacation rental. D. All of these are examples of sunk costs.