The income elasticity of demand measures
A) the income effect of a change in price.
B) the responsiveness of quantity demanded to changes in income.
C) how a consumer's purchasing power is affected by a change in the price of a product.
D) the percentage change in the price of a product divided by the percentage change in consumer income.
B
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Growth accounting, popularized by Robert Solow, attempts to attribute a change in aggregate output
A) to its most important single cause. B) separately between changes in government policy and changes in total factor productivity. C) separately between changes in total factor productivity and changes in the supplies of factors of production. D) separately between changes in the supplies of factors of production and changes in government policy.
If the signaling theory of education is correct,
a. workers with more years of formal schooling will earn less than workers with fewer years of formal schooling. b. additional years of formal schooling do not increase a worker's productivity. c. workers with more years of formal schooling are less likely to be affected by ability, effort, and chance. d. men are more likely to earn more than women because men are more likely to have graduated from college.
A simultaneous increase in both the supply of and the demand for vitamin water would cause an increase in the equilibrium quantity of vitamin water.
Answer the following statement true (T) or false (F)
During 2016, Tony's assets equal $300,000 and his net worth is $50,000. Tony's liabilities are
A. $50,000. B. $150,000. C. $200,000. D. $250,000.