Last year, Max bought 6 pairs of athletic shoes when his income was $35,000 . This year, his income is $42,000 . and he purchased 8 pairs of athletic shoes. Holding other factors constant, it follows that Max
a. considers athletic shoes to be necessities.
b. considers athletic shoes to be inferior goods.
c. considers athletic shoes to be normal goods.
d. has a low price elasticity of demand for athletic shoes.
c
You might also like to view...
Suppose that the labor movement has a revival in the United States and the majority of workers join labor unions. As a result we would expect
A) the unemployment rate to fall. B) the unemployment rate to rise. C) the labor force participation rate to fall. D) no change in the unemployment rate or labor force participation rate.
A foreign bank receives a deposit of $10,000 from a U.S. citizen. As a result, there is a net capital outflow from the U.S., if ________
A) the bank buys a U.S.-made computer B) the bank buys a bond issued by a U.S. company C) the bank keeps the $10,000 in a vault D) all of the above E) none of the above
Are all categories of government expenditures included in gross domestic product? What government activities are not included in GDP?
What will be an ideal response?
According to the rule of 70, a country will double its real GDP per capita in 35 years if it grows at an average of ________ per year.
A. 3.5 % B. 2.0% C. 5.0% D. 7.0%