For which of the following goods is the income elasticity of demand likely to be largest?
a. poultry products
b. meals at restaurants
c. lemonade
d. used books
e. paperback mystery novels
B
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If a nation is a net importer it means that the:
A) nation only imports goods and services and does not export any good. B) nation only imports those goods in which it has an absolute disadvantage. C) nation's imports are worth more than exports over a given period of time. D) nation prohibits the import of goods and services that can be produced domestically.
In the 1970s there was a long draught in California that left a large section of Southern California parched
As water prices began to soar how do you think most residents changed their consumption of water? What kinds of water consumption probably did not change and why? Make sure to use utility in your explanation.
The Fisher equation implies ________
A) the nominal interest rate equals the real rate of inflation plus expected inflation B) the real interest rate equals expected inflation C) expected inflation equals current inflation D) the rate of inflation equals the real minus the nominal rates of interest E) none of the above
Deadweight losses represent the
a. inefficiency that taxes create. b. shift in benefit from producers to consumers. c. part of consumer and producer surplus that is now revenue to the government. d. increase in revenue to the government.