A good with a high income elasticity is generally considered to be
a. an inferior good.
b. a luxury good.
c. a necessity.
d. inexpensive, relative to other goods.
B
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What is the analytically correct way to allocate joint costs or to determine the specific costs of products produced jointly (such as the view and the food from a restaurant with an excellent view)?
A) By comparing marginal costs B) By comparing all costs other than sunk costs C) By subtracting the total costs from the total revenue D) By using the prevailing interest rate to discount the stream of expected future costs and benefits E) There is no analytically correct way to do so.
A technological improvement in the production of tablets would
A) increase the demand for tablets. B) increase the supply of tablets. C) decrease the demand for tablets. D) decrease the supply of tablets.
The Japanese yen is an example of a soft currency.
a. true b. false
Refer to the information provided in Figure 24.1 below to answer the question(s) that follow.
Figure 24.1Refer to Figure 24.1. The equilibrium level of aggregate expenditure is $________ billion.
A. 4,000 B. 3,000 C. 2,000 D. 1,500