Which of the following statement(s) is (are) true?
A) If the own-price elasticity of demand is -1, the demand is said to be unitary elastic.
B) An income elasticity of less than 1 indicates that the commodity is a necessity.
C) A positively sloped Engel curve implies that the commodity is a normal good.
D) All of the above.
Answer: D
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The benefits of net capital inflows to a country include all of the following except:
A. interest and dividend payments owed to foreign investors. B. a potentially higher growth rate. C. a higher rate of investment in new capital. D. a larger pool of total savings.
The table above has the domestic demand and domestic supply schedules for a good. According to the table, the no-trade price of the good is
A) $4. B) $6. C) $8. D) $10. E) $2.
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Exhibit 30-1
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___________ unitary elasticity in either a supply or demand curve refers to a situation where a price change of one percent results in a quantity change of one percent.
a. Inconsistent b. Constant c. Locked d. Temporary