Suppose that the income elasticity of demand for college education is 1.3 . This indicates that

a. college education is a necessity
b. college education is an inferior good
c. the demand curve for college education slopes downward
d. college education is a normal good
e. the demand curve for college education is horizontal


D

Economics

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An increase in the price of MP3 players will result in

A) a smaller quantity of MP3 players supplied. B) an increase in the supply of MP3 players. C) a decrease in the demand for MP3 players. D) a larger quantity of MP3 players supplied.

Economics

Exhibit 7-15 Long-run average cost If the firm represented in Exhibit 7-15 is operating with a plant whose size corresponds to short-run average total cost curve A, the level of output that would minimize its short-run average total cost is:

A. 500 units per week. B. 1,000 units per week. C. 1,500 units per week. D. 2,000 units per week.

Economics

For a monopsonist the marginal cost of increasing its workforce will always be greater than the wage rate because

A. a normal rate of return must be paid to the owner. B. the industry will be a closed shop. C. the wage rate offered the newest employee must be paid to all workers. D. there is not good factor substitution in a monopsony.

Economics

Refer to the information provided in Table 8.4 below to answer the question(s) that follow. Table 8.4ProduceUsing TechniquesUnits of Variable KInputs L1 unit of outputA4  4?B2  6????2 units of outputA 7   6?B410????3 units of outputA  8    6?B  6 11Refer to Table 8.4. Assume that the relevant time period is the short run. Assuming the price of capital (K) is $10 per unit and the price of labor (L) is $5 per unit, this firm's total cost of producing one unit of output is

A. $50. B. $60. C. $110. D. indeterminate from this information.

Economics