A 10 percent decrease in income decreases the quantity demanded of pizza by 3 percent. The income elasticity of demand for pizza is
A) -0.3.
B) 0.3.
C) 3.3.
D) 10.0.
B
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Forecasts by the Congressional Budget Office show spending on Social Security, Medicare,
and Medicaid rising from 10.1 percent of GDP in 2015 to ________ percent of GDP in 2090, and by 2090 the federal government will be spending, as a fraction of GDP, ________ on these three programs as it currently spends on all programs combined. A) 16.2 percent; half as much B) 19.8 percent; half as much C) 19.8 percent; nearly as much D) 16.2 percent; nearly as much
An important reason why diseconomies of scale arise is because firms may have to hire lower-skilled workers as firms expand
Indicate whether the statement is true or false
Incentive-based regulatory approaches:
a. are viewed favorably by most economists as a way to control pollution. b. provide less flexibility than the command-and-control approach. c. tend to hurt wealthier people more than poor people. d. require that the government specify certain types of pollution control technology that firms must adopt.
What event led to the end of the Great Moderation?
A. The Great Depression B. The Great Crash C. Stagflation D. The Great Recession