What is the practical significance of income elasticity coefficients? Explain the significance using as examples an income elasticity of 3.0 for automobiles and an income elasticity of 0.20 for home-cooked meals
Please provide the best answer for the statement.
Income elasticity coefficients provide insights into the economy in terms of the impact of decreasing incomes on certain products. For example, products with relatively high income elasticity coefficients such as automobiles are generally hit hardest by recessions. Those with low or negative income elasticity coefficients, such as meals cooked at home, are much less affected.
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Brazil has a relatively low income per capita because it has relatively few natural resources
a. True b. False Indicate whether the statement is true or false
A cost of reengineering programs is that they change:
A. the measures used to evaluate high-level executives. B. the external market forces as well as the organizational architecture. C. decision rights but not performance-evaluation systems. D. performance-evaluation systems but not decision rights.
Which of the following is a benefit of income inequality?
A. It promotes economic growth in the less developed economies. B. It motivates people to be at the high end of income distribution. C. It reduces the intensity of business fluctuations in an economy. D. It reduces the taxes to be paid by the ones in the low end of income distribution.
Explain some of the reasons why the HO model is difficult to test empirically. Does this mean that it is not a useful model of trade?
What will be an ideal response?