For Product X, the income elasticity of demand is -2.56. Which of the following is therefore TRUE?
A) Product X is a necessity.
B) Product X is a luxury.
C) Product X is an inferior good.
D) Product X is a normal good.
C
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In the United States, the Federal Reserve pursues an inflation targeting policy of keeping inflation below 2 percent
Indicate whether the statement is true or false
In the figure above, suppose a subsidy is provided to private colleges. What amount of subsidy will ensure the efficient number of students?
A) $10,000 B) $25,000 C) $15,000 D) $5,000 E) $20,000
If a firm makes its own inputs rather than buying them, it ________ need to be concerned about the hold-up problem and ________ need to be concerned with contract compliance.
A) does not; does not B) does; does C) does; does not D) does not; does
Macroeconomic equilibrium is best described as a situation in which: a. the slope of the aggregate demand curve equals the slope of the aggregate supply curve. b. quantity demanded exceeds quantity supplied
c. quantity demanded equals quantity supplied at a unique price level. d. quantity supplied exceeds quantity demanded at a unique price level. e. quantity supplied equals quantity demanded at a unique price level.