For luxuries, income elasticity is:
A. less than 0.
B. greater than 0.
C. equal to 1.
D. greater than 1.
Answer: D
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Refer to the figure above. At what level of output does the firm maximize profits?
A) 0 units B) 10 units C) 20 units D) 30 units
In the short run, the Federal Reserve can affect which of the following?
A) the growth rate of real GDP in the economy B) the inflation rate C) the unemployment rate D) all of the above
If real GDP declines for at least one-half year, the economy is experiencing a:
a. depression. b. decline. c. recession. d. growth recession. e. deflation.
Using one day’s stock price to predict the price for the next day is a good investment strategy, given that stock prices have been shown not to follow a “random walk.”
Answer the following statement true (T) or false (F)