If a good has an income elasticity of demand greater than one, one might classify that good as
A) a necessity.
B) a luxury.
C) unusual.
D) inelastic.
B
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The amount earned by owners of the nation's factors of production is
A) total income. B) private and government transfer payments. C) the wages and fringe benefits received by the nation's workers. D) all profits received by businesses.
Explain the business cycle by describing the phases and turning points
What will be an ideal response?
In the U.S., one example of a cartel that is legal is
A) the railroads, including Union Pacific. B) the oil industry. C) Major League Baseball. D) None, all cartels are prohibited.
State and local governments
a. are funded entirely by their own tax base. b. receive the majority of their tax revenues from corporate income taxes. c. are generally not responsible for collecting sales taxes. d. receive some of their funds from the federal government.