Which of the following goods is most likely to have a negative income elasticity of demand?
a. Automobiles
b. Bargain brand noodles
c. Shoes
d. Fine Jewelry
b
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What is the primary difference between a sole proprietorship and a partnership?
A) Partnerships have more owners than do proprietorships. B) Partnerships can issue stocks and bonds while proprietorships cannot. C) Proprietorships have unlimited liability while partnerships have limited liability. D) There is no real difference between the two types of firms.
All of the following are surplus items on the balance of payments accounts EXCEPT
A) U.S. residents purchases of gold from foreign residents. B) foreign tourists spending funds in the United States. C) exports of merchandise. D) sales of U.S. dollars to foreign residents.
Consider two situations: In situation A the production of widgets is monopolized by a single firm. In situation B the production of widgets is perfectly competitive. In both situations the supply of labor to widget makers is infinitely elastic at a wage of w. Which of the following statements is true?
a. The marginal value product of labor will be the same in the two cases. b. The marginal value product of labor is higher in case B than in case A. c. The marginal value product of labor is higher in case A than in case B. d. From the information given it is not possible to make a definite statement about the marginal value product of labor.
What is the neutrality of money with respect to the quantity theory of money?
A. The money supply can affect the growth rate of prices (inflation) in the long run. B. The money supply cannot affect the growth rate of real GDP in the long run. C. The money supply can affect the growth rate of the real GDP in the short run. D. All of the above.