Suppose Joe purchases 10 lottery tickets per month when his monthly income is $200. Joe receives a raise at work, giving him an extra $40 per month in take-home pay, and Joe now purchases 15 lottery tickets per month. What is Joe's income elasticity of demand for lottery tickets?
a. 2.5
b. 1.
c. 0.4.
d. 0.25.
a. 2.5
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A market basket:
A. looks like a really long shopping list for what firm’s typically purchase. B. includes specific goods and services in fixed quantities that roughly correspond to a typical consumer's spending. C. onlyincludes housing, food, and clothing, but not things like transportation. D. is what an economist creates in order to understand purchasing trends of households and firms.
Most bank deposits in the United States are insured by the Federal Deposit Insurance Corporation (FDIC)
a. True b. False Indicate whether the statement is true or false
The additional shifts in aggregate demand that result when there is an increase in government spending is known as the _____
Fill in the blank(s) with correct word
An asset is liquid if:
A) its value does not change from day to day. B) it can be easily converted into cash without loss of value. C) it offers a positive rate of interest. D) its value is more likely to increase in future.