The point we were making in using the pictures above and similar examples was that
A) large income differences permit wide variation in the quality of items purchased
B) the wealthy use vastly different means of transportation than middle income households
C) consumption differences are not as spread out as income differences
D) wealthy people prefer black cars relative to blue cars
Answer: C) consumption differences are not as spread out as income differences
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Answer the following statements true (T) or false (F)
1. Price elasticity of demand tends to be greater for substitute items than for complementary goods. 2. If income increases and the demand for a product increases, the product is a normal good. 3. The more substitutes for a good, the more elastic its demand tends to be. 4. The total quantity of a good offered for sale is unaffected by estimates by sellers of the probable costs of producing the good in the future. 5. The total quantity of a good offered for sale is unaffected by estimates by sellers of the probable costs of producing the good in the future.
In the neoclassical growth model without technological progress, the steady-state growth rate of per capita output is
a. the growth of technology plus the growth of population. b. the growth of population. c. the growth of technology. d. the growth of technology plus population plus depreciation.
The ways to address agency costs include all EXCEPT
a. running background checks on prospective employees b. hiring only from job fairs c. spot checks of the quality of employee work d. replacing closed offices with cubical office spaces
During 1980-2009, the countries achieving the most rapid growth of real GDP were nearly all
a. high-income developed economies. b. low-income less developed economies at the beginning of the period. c. South American economies. d. European economies. e. African economies.