If a good is normal, the income elasticity of demand must be
A. positive and greater than 1.
B. negative.
C. zero.
D. merely positive (not necessarily greater than 1).
Answer: D
You might also like to view...
Suppose a firm's total revenue is $1,000,000. The firm has incurred explicit costs of $750,000
There is also $50,000 of forgone wages by the owner, $10,000 of forgone interest by the owner, $3,000 worth of economic depreciation, and $20,000 worth of normal profit. What is the firm's economic profit? A) $250,000 B) $200,000 C) $190,000 D) $167,000 E) $180,000
In a market economy, _____ own(s) all the basic resources or factors of production
a. households b. the federal government c. the Federal Reserve bank d. the local government e. business firms
If a large fraction of the capital stock in the U.S. stopped functioning, it would: a. Shift the short run aggregate supply curve to the left
b. Shift the long run aggregate supply curve to the left. c. Shift both the short run aggregate supply curve and long run aggregate supply curves to the left. d. Do none of the above
When Sam in San Francisco buys stock in Fuji Film, he is contributing to:
A. capital outflow from the U.S. B. capital outflow from Japan. C. capital inflow to the U.S. D. domestic investment in the U.S.