If a good has an income elasticity of 1.83, then it:
A. is a luxury.
B. probably has a lot of close substitutes available.
C. is an inferior good, and a necessity.
D. is a normal good, and a necessity.
Answer: A
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The Keynesian aggregate demand curve slopes downward because for any given money supply, an increase in the price level ______ real money holdings which _____ the interest rate and _____ income
a. increases; lowers; increases b. reduces; raises; reduces c. reduces; lowers; increases d. increases; raises; reduces
Which of the following helps low income countries grow rapidly relative to high income countries?
a. Low income countries are in a better position to save a larger share of their income. b. Low income countries can copy (or borrow at a low cost) technologies and practices that have been successful in high income countries. c. Low income countries generally have legal systems that protect property rights and enforce contracts in a more evenhanded manner. d. Low income countries generally have more favorable weather
The United States experienced a depression in which of the following decades?
A. the 1920s B. the 1940s C. the 1950s D. the 1970s
The federal minimum wage law demonstrates
a. market equilibrium. b. a societal choice for economic equity over efficiency. c. the function of equilibrium price in a competitive market. d. government intervention to ensure the equilibrium price.