Income elasticity of demand describes how change in income affects the quantity demanded of a good
a. True
b. False
Indicate whether the statement is true or false
True
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If a country has a fixed exchange rate
A) central banks must buy and sell their holdings of currencies to maintain a given exchange rate. B) central banks have more control over real GDP in the economy. C) the exchange rate is allowed to fluctuate in response to changes in the supply and demand for currency. D) the equilibrium exchange rate in that market does not respond to changes in supply and demand for currency.
When an individual's wage rises, the substitution effect tends to
a. increase hours worked. b. decrease hours worked. c. leave hours worked unchanged. d. it is impossible to predict what will happen to hours worked.
Which statement is true?
A. Employment discrimination has ceased to exist. B. Women working full time now earn virtually the same amount as men. C. The poverty rate for blacks and Hispanics is three times the poverty rate for whites. D. Property income is mainly paid in the form of rent.
Suppose that a new drug has been approved to treat a life-threatening disease. The demand for that drug is shown on the graph below. Prior to approval of this drug, the only treatment for this condition was any one of several non-prescription, or over-the-counter, pain relievers. The demand for one brand of the several non-prescription pain relievers is also shown on the graph. 
The manufacturer of the new drug would ________ total revenue by increasing the price from $15 to $16.
A. experience no change in B. decrease C. experience an uncertain change in D. increase