For which of the following goods is the income elasticity of demand likely to be largest?
a. paperback mystery stories
b. best-selling hardcover novels
c. used textbooks
d. children's books
e. leather-bound editions of Shakespeare
E
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As a portion of GDP, government purchases include:
A.) Food stamps. B.) National defense expenditures. C.) Unemployment benefits. D.) Welfare checks.
Which of the following statements is incorrect?
A. Budget deficits raise the national debt. B. The concepts of deficit and debt are closely related. C. Getting rid of the deficit eliminates accumulated debt. D. Budget surpluses lower the national debt.
If planned aggregate expenditures are $150 billion, consumption is $60 billion, investment is $55 billion, government spending is $35 billion, there is a
A. trade surplus of $150 billion. B. trade deficit of $150 billion. C. trade surplus of $300 billion. D. trade balance.
Which of the following will cause a movement along the supply curve for oil?
A) new technology to drill oil underwater in the Gulf of Mexico B) a change in the price of oil C) an increase in the number of oil-producing firms D) government subsidies to oil producers in Wyoming