The reason a brand name item (e.g., Tyson chicken) has a larger price elasticity than a class of items (e.g., chicken) is that:
A. there are fewer substitutes for Tyson chicken than for chicken generally.
B. the share of income spent on "chicken" is larger than spent on "Tyson Chicken".
C. there are fewer substitutes for chicken generally than for Tyson chicken.
D. it takes a lot of time to adjust to a substitute brand of chicken.
Answer: C
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Autonomous consumption is defined as
A) the level of real consumption spending that is independent of real disposable income. B) the real consumption spending by the autonomous government. C) the level of real consumption spending that is equal to real disposable income. D) the consumption of foreign-made goods independent of exchange rates.
Refer to the information provided in Figure 6.4 below to answer the question(s) that follow.
Figure 6.4Refer to Figure 6.4. Bill?s budget constraint is AC. If the bell peppers price decreases, Bill?s budget constraint will
A. swivel toward AD. B. remain at AC. C. swivel toward AB. D. The budget constraint is not depicted on the diagram.
Medicare, Part B is
A. compulsory at a low premium. B. voluntary at a low premium. C. voluntary at a high premium. D. compulsory at a high premium.
If the actual rate of unemployment is above the natural rate of unemployment, then potential GDP is:
A. Equal to the GDP gap B. Equal to actual GDP C. Less than actual GDP D. Greater than actual GDP