An inferior good has a ________ elasticity of demand
A) positive income
B) negative income
C) negative cross
D) positive cross
E) negative price
B
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The highest incidence of those without health insurance occurs in which age category?
a. Under 18 years of age. b. 18-34 years of age. c. 35-44 years of age. d. 45-64 years of age. e. Over 65 years of age.
Suppose a bond sells for $2,000 and pays $200 per year in interest. What will happen to the current interest rate if the price of the bond changes to $1,800?
a. It decreases by 10 percentage points. b. It increases by 10 percentage points. c. It remains unchanged. d. It increases by 1 percentage point. e. It decreases by 1 percentage point.
Which of the following statements best describes how economic growth is represented in the AD/AS diagram?
a. In the AD/AS diagram, long-run economic growth due to productivity increases over time will be represented by a dramatic shift to the right of aggregate supply. b. In the AD/AS diagram, long-run economic growth due to productivity increases over time will be represented by a gradual shift to the right of aggregate supply. c. In the AD/AS diagram, short-run economic growth due to productivity increases over time will be represented by a dramatic shift to the right of aggregate supply. d. In the AD/AS diagram, short-run economic growth due to productivity increases over time will be represented by a gradual shift to the right of aggregate supply.
Economists expect the relationship between consumption and disposable income to be
a. unpredictable. b. transitory. c. fixed. d. inverse e. stable.