When income increases from $30,000 a year to $40,000 a year, the quantity demanded of weekend vacations by Sara increases from 2 a year to 5 a year
For Sara, the income elasticity of demand of weekend vacations is ________ and weekend vacations are ________ good. A) 3; a normal
B) 4.5 a normal
C) 1/3; an inferior
D) -4.5; an inferior
E) 1/3; a normal
A
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The marginal revenue product of an input tends to decrease as
A. the price of the input decreases. B. the price of output increases. C. productivity increases. D. more of the input is used.
Suppose the labor force stays constant, and the working-age population stays constant, but a greater number of persons who were unemployed become employed. The labor force participation rate will
A) decrease. B) remain constant. C) increase. D) not change in a way that can be predicted.
List three key reasons to study economics
What will be an ideal response?
If disposable income = $200 billion and the APS = 0.9, then
A) saving = $90 billion. B) saving = $45 billion. C) saving = $180 billion. D) saving cannot be determined.