Which of the following statement(s) is (are) true?
A) If the income elasticity of demand for a product is negative, then the good is labeled an inferior good.
B) If the income elasticity of demand for a product is greater than 1, then the good is labeled a necessity.
C) If the cross-price elasticity of demand between two goods is negative, then the two good are complements.
D) Both A and C
Answer: D
You might also like to view...
Holding everything else constant, if total factor productivity increases, the debt-to-GDP ratio will ________, and if the labor force growth rate increases, the debt-to-GDP ratio will ________
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
Give some possible explanations of the productivity slowdown in the United States that occurred in the 1973–1995 period.
What will be an ideal response?
What are the main characteristics of a public good? Why does the government produce public goods rather than allowing firms in the competitive market to do so?
Changes in nominal GDP reflect
a. only changes in prices. b. only changes in the amounts being produced. c. both changes in prices and changes in the amounts being produced. d. neither changes in prices nor changes in the amounts being produced.