If a good has an income elasticity of 0.18, then it is:
A. a normal good, and a necessity.
B. a normal good, and a luxury good.
C. an inferior good, and a necessity.
D. an inferior good, and a luxury.
A. a normal good, and a necessity.
You might also like to view...
The opportunity cost of holding excess reserves is the federal funds rate
A) minus the discount rate. B) plus the discount rate. C) plus the interest rate paid on excess reserves. D) minus the interest rate paid on excess reserves.
During his tenure at the helm of the Federal Reserve System, Paul Volcker reestablished ________
A) a system of fixed exchange rates B) the role of open market operations in the monetary policy actions of the Fed C) the credibility of the Federal Reserve as an inflation fighting institution D) the targeting of monetary aggregates, like the fed funds rate
As an economy moves from point to point along its production possibilities curve, which one of the following variables changes?
A) the total amount of resources employed B) the level of technology C) the level of efficiency of some factors of production D) the amount of each good or service produced
If a state government wants to collect the maximum tax revenue from a unit excise tax, which of the following would they tax?
A) cigarettes B) beef hamburgers C) luxury cars D) hotdogs