Suppose the quantity of x is measured on the horizontal axis. If the income consumption curve is vertical, then the income elasticity of demand for x is
A) 0.
B) 1.
C) -1.
D) There is not enough information to determine the income elasticity of demand for x.
A
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The profit earned by a monopolistic competitor after the entry of new firms is ________
A) higher than the profit earned by the firm before the entry of new firms B) lower than the profit earned by the firm before the entry of new firms C) equal to the profit earned by a monopolist in the long run D) higher than the profit earned by a perfect competitor in the long run
Which of the following is a reason why a particular job may pay a higher-than-average wage rate?
a. low educational requirements b. high fringe benefits c. free parking d. high risk e. low skill requirement
In calculating the current yield for a bond the:
A. coupon payment is ignored. B. present value of the capital gain/loss is ignored. C. present value of the coupon payments is the only important consideration. D. present value of the final payment is the only important consideration.
Businesses do all of the following except:
A. demand goods and services from households in the goods market. B. pay taxes to the government. C. demand labor services from households in the factor market. D. supply goods and services to the government in the goods market.