If an individual's income rises 40 percent and his clothing purchases increase 50 percent in response, the income elasticity for clothing by the individual is
A) -0.8.
B) 0.8.
C) 1.25.
D) -1.25.
C
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In monopolistic competition there are ________ barriers to entry, so therefore in the long run, economic profit ________
A) no; is substantial B) no; equals zero C) many; equals zero D) many; is substantial E) many; might be earned depending on the degree of product differentiation
Monopolistic competition is judged to be economically inefficient because
A) the price is greater than marginal cost. B) firms earn zero economic profit in the long run. C) marginal revenue equals marginal cost. D) firms have deficient capacity in the long run. E) firms earn an economic profit in the long run.
The United States
A) has never had a significant problem with corruption. B) currently is one of the most corrupt countries. C) currently ranks among the least corrupt countries. D) had a significant problem with corruption in the 1930s.
The national debt
a. is currently greater than the annual federal deficit b. is reduced by the revenue generated from the federal deficit c. decreases as the deficit is reduced d. is a flow variable e. varies depending on developments in the stock market