Income elasticity will be positive for:
A. all normal goods.
B. all inferior goods.
C. only necessities.
D. only luxury goods with substitutes.
A. all normal goods.
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Suppose that nuclear power plants are banned. What are examples of the opportunity costs of this decision?
What will be an ideal response?
Which of the following statements is FALSE?
A) A correct measure of a firm's economic cost includes both accounting and opportunity cost. B) The accounting profit earned by a firm will always be less than its economic profit. C) The major difference between accounting and economic profit is that accounting profit does not reflect the opportunity cost of using resources. D) The accounting profit of a firm is its total revenue minus total explicit costs.
Which of the following statements is true?
a. All people in poverty are on welfare. b. Unemployment compensation is an example of an in-kind transfer. c. Temporary Assistance to Needy Families (TANF) is an example of a cash payment made by government to the impoverished. d. After cash assistance and in-kind transfers are considered the distribution of income in the United States is more unequal. e. All of these.
The circular flow diagram is best described as a(n)
a. abstraction of little value in macroeconomics. b. exact representation of the cause and effect relationship between spending and employment. c. model that clarifies the relationship between spending and income. d. model to explain the relationship between the federal deficit and tax revenues.