A change in the distribution of income which leaves total income constant will not shift the market demand curve for a product if
a. everyone has an income elasticity of demand of zero for the product.
b. everyone has the same income elasticity of demand for the product.
c. individuals have differing income elasticities for the product, but the average income elasticity for income gainers is equal to the average income elasticity for income losers.
d. any of the above conditions occur.
d
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Answer the following statements true (T) or false (F)
1. In a mature industry, all firms operate with constant returns to scale. 2. On a cost/output graph, the average fixed cost is constructed as a straight horizontal line. 3. Marginal cost crosses the average variable cost and the average total cost at their lowest points. 4. The average fixed cost remains constant even in the long run. 5. Marginal cost is related inversely to the marginal product.
According to the table above, which of the following exhibit decreasing returns to scale?
A) tobacco products and clothing, but not furniture B) transportation equipment and food, but not paper products C) transportation equipment, food, and paper products D) furniture and electronic equipment, but not tobacco products
Which of the following would be considered a contingent? contract?
A) a piece rate contract B) a profit-sharing contract C) a contact with a bonus D) All of the above.
If the nominal interest rate is 10% and the rate of inflation is 7%, what is the real rate of interest?
A. 2.8% B. 10.3% C. 7.0% D. 3.0%