Your income rises from $1,000 a year to $10,000 and your purchases of beer increase from 10 to 20. What number below most closely approximates your income elasticity over this range?
A. 2.5
B. 4
C. 1
D. 0.4
Answer: D
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"By definition, all parts of M2 are money." Is the previous statement correct or not? Explain your answer
What will be an ideal response?
Exhibit 6A-6 Consumer equilibrium
?
Given the budget lines and indifference curves shown in Exhibit 6A-6, if the budget line shifts, then the equilibrium points X and Y:
A. result from a decrease in the price of good X. B. result from a decrease in the consumer's budget. C. are two points along a downward sloping demand curve for good X. D. result from a decrease in the price of good Y.
An example of an income maintenance program is
A) a proportional income tax. B) low-cost college tuition. C) unemployment compensation. D) rent control.
Census data on the income distribution among families in the United States in recent years show
a. a rising share earned by the top fifth and a declining share earned by the bottom fifth b. a rising share earned by the bottom fifth and a declining share earned by the top fifth c. both the share earned by the top fifth and the share earned by the bottom fifth rising d. both the share earned by the top fifth and the share earned by the bottom fifth falling e. falling total income in the top fifth