The income elasticity of demand _____
a. must be negative because of the law of diminishing marginal utility
b. could be positive, negative or zero, depending on the nature of the good
c. must be positive for all goods because consumers tend to buy more at higher incomes
d. is usually zero because "you can only have so much"
e. can never be zero
b
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The parent company would want to reward managers based on division revenues because
a. It decreases the incentives for the managers to make good decisions for their division b. It increases the incentives for the managers to make good decisions for their divisions c. It does not change the motivations for the managers d. None of the above
Average total cost is found by subtracting AFC from AVC
Indicate whether the statement is true or false
If utility is not maximized, then:
A. some change in consumption will increase satisfaction. B. no change in consumption will increase utility. C. only a change in income will increase utility. D. only a change in price will increase utility.
New entrants to the labor force usually account for around ________ percent of the unemployed.
A. 5 B. 25 C. 10 D. 20