Income elasticity of demand describes how change in income affects the quantity demanded of a good.
Answer the following statement true (T) or false (F)
True
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Efficiency wage is another name for the minimum wage
Indicate whether the statement is true or false
The price of domestically produced DVD players increases dramatically, causing a 1 percent increase in the CPI. The price increase will most likely cause the GDP deflator to increase by
a. (i) more than 1 percent. b. (ii) less than 1 percent. c. (iii) 1 percent. d. None of (i), (ii), and (iii) is correct; this particular price increase will not affect the GDP deflator.
Microprocessors have become faster and faster since their invention in 1971, with their performance approximately doubling every 18-24 months. This trend of improvement has become known as
A. the Intel effect. B. information clustering. C. Gates's law. D. Moore's law.
A business borrows $100,000 for a lease on a factory with an interest rate of 2 percent, the explicit cost is
A. $80,000. B. $2,000. C. $20,000. D. $120,000.