If income increases by 2.0 percent, and quantity demanded of a good increases by 0.2 percent, the income elasticity for the good is
A) 0.22.
B) 0.002.
C) 0.10.
D) 1.00.
C
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Suppose a firm uses land, labor, and capital for its production process. If it is renting the equilibrium quantity of all three factors of production, then which of the following conditions will hold?
A) Marginal product from the last dollar spent on land = Marginal product from last dollar spent on labor > Marginal product from the last dollar spent on capital B) Marginal product from the last dollar spent on land > Marginal product from last dollar spent on labor > Marginal product from the last dollar spent on capital C) Marginal product from the last dollar spent on land > Marginal product from last dollar spent on labor = Marginal product from the last dollar spent on capital D) Marginal product from the last dollar spent on land = Marginal product from last dollar spent on labor = Marginal product from the last dollar spent on capital
The goal of a cartel is to
A) increase competition among members. B) maximize industry profits. C) increase industry production. D) all of the above.
In addition to prediction, one purpose of regression analysis is:
a. to measure the overall "fit" of the model to the sample observations b. to test whether the slope parameter ? is equal to some particular value c. to test whether the slope parameter ? is equal to zero d. b and c e. none of the above
Which of the following is not likely to incorporate a great deal of economic rent?
a. the salary paid to Paula Abdul as a judge on American Idol b. the price for dinner at a nice restaurant in a major city c. rental of beachfront property during the summer d. sale of piece the parquet floor previously in the famous Boston Garden