The income elasticity of demand is a measure of
A) how demand for a product changes when the price of a substitute or complement product changes.
B) how responsive consumers are to changes in the price of a product.
C) how responsive suppliers are to changes in the price of a product.
D) the extent to which the demand for a good changes when income changes.
E) the extent to which the supply of a good changes when the demand changes as a result of a change in income.
D
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The "law of demand" states that, other thing remaining the same, the higher
A) the price of a good, the lower is the demand for this good. B) consumers' incomes, the greater is the demand. C) the price of a good, the higher is the quantity demanded. D) the price of a good, the smaller is the quantity demanded.
Which of the following is an example of thinking at the margin?
(A) Deciding to buy a car you don't really like because it is significantly less expensive than the one you want. (B) Putting all of your money in a savings account because the interest rate is so high. (C) Determining whether it is better to spend your savings on a new CD player or on a television. (D) Deciding whether the benefit of working two extra hours per day is worth the sacrifice of study time.
What is the largest category in local government spending?
A. education B. public welfare C. health and hospitals D. fire protection
The poverty income threshold in the United States was originally calculated by
A. multiplying a nutritionally adequate food plan for emergency use by 5. B. multiplying a nutritionally adequate food plan for emergency use by 2. C. multiplying a nutritionally adequate food plan for emergency use by 4. D. multiplying a nutritionally adequate food plan for emergency use by 3.