The income elasticity of demand for restaurant meals is 1.61. So
A) if income increases by 16.1 percent, the quantity demanded of restaurant meals will increase by 10 percent.
B) if income increases by 10 percent, the quantity demanded of restaurant meals will increase by 16.1 percent.
C) restaurant meals are an income elastic normal good.
D) Both answers B and C are correct.
D
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In the long-run average cost function, only the amount of capital is allowed to vary
Indicate whether the statement is true or false
A model with coordination failures has
A) agents that do not act rationally. B) multiple equilibria. C) a government that is too large. D) a tax rate that is too high.
Economics is primarily the study of: a. human greed
b. how firms compete for profits in the marketplace. c. how limited resources are allocated to satisfy unlimited wants. d. how successful investors make money in the stock market.
The two basic ways to define money are
A. the transactions approach and the fiduciary approach. B. the cash approach and the M3 approach. C. the liquidity approach and the store of value approach. D. the transactions approach for M1 and the liquidity approach for M2.