If Joshua buys 10 percent more compact discs when his income increases by 5 percent, then, for Joshua
a. price elasticity of demand for compact discs is greater than one
b. compact discs are inferior goods
c. compact discs are price inelastic
d. compact discs are income inelastic
e. compact discs are income elastic
E
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An internal economies of scale is defined as
A) one whose size or scale effects are not located in the firm, but in the industry. B) one with falling costs over a specific level of output. C) one with falling costs over a relatively large range of output. D) one with falling costs over a relatively large range of output, but definite declining profits.
What best describes the impact of the cotton gin?
a. A decrease in the price and an increase in the quantity of cotton. b. An increase in the price and a decrease in the quantity of cotton. c. Decreases in both the price and quantity of cotton. d. Increases in both the price and quantity of cotton.
Borrowing is like:
A. selling the right to use your money for a time. B. buying the right to use someone else's money. C. selling the right to use someone else's money. D. buying the right to use your money for a time.
The four main categories of resources are
a. labor, money, capital, and inputs b. capital, land, raw materials, and entrepreneurship c. raw materials, money, labor, and capital d. land, capital, labor, natural resources, and entrepreneurship e. human capital, physical capital, labor, and natural resources