Janice earns an income of $2,000 a week and goes out to lunch 4 times a week. If her income increased to $2,100 she would go out to lunch 5 times a week. Compute Janice's income elasticity of demand
A) 0.22
B) 4.56
C) 2.28
D) -0.22
B
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The multiplier-accelerator model was developed by
A) Paul Samuelson. B) classical economists. C) Walter Heller. D) John Maynard Keynes.
Net national product equals
A) gross national product minus statistical discrepancy. B) gross national product minus depreciation. C) national income minus taxes on production and imports. D) national income plus depreciation.
Suppose that the state of California imposes a minimum wage of $7 per hour. In the entry-level labor market in California fast-food restaurants, the quantity of labor demanded at $7 per hour is 800 thousand, and the quantity of labor supplied is 1.2 million. Which of the following is true?
a. There is a surplus of 1.2 million workers in the labor market. b. There is a surplus of 400 thousand workers in the labor market. c. There is a shortage of 400 thousand workers in the labor market. d. There is a shortage of 800 thousand workers in the labor market.
Which of the following demonstrates the ideal use of expansionary fiscal policy?
A. The government slowly hires unemployed workers and puts them to work on permanent projects that continue long after the economy recovers. B. The government quickly hires already-employed workers and puts them to work on projects that are finished as the economy recovers. C. The government quickly hires unemployed workers and puts them to work on projects that are finished as the economy recovers. D. The government quickly hires unemployed workers and puts them to work on permanent projects that continue long after the economy recovers.