If the income elasticity for a particular good is negative, then:
A. as income increases, consumers will tend to purchase more of the good.
B. as income increases, consumers will tend to purchase less of the good.
C. the good is a normal good.
D. the good is a luxury good.
Answer: B
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Which of the following examples definitely illustrates an appreciation of the U.S. dollar?
A) The dollar exchanges for 120 euros and then exchanges for 100 euros. B) The dollar exchanges for 100 yen and then exchanges for 125 euros. C) The dollar exchanges for 1 pound and then exchanges for 1.2 pounds. D) none of the above
One reason for the extraordinary growth of foreign financial markets is
A) decreased trade. B) increases in the pool of savings in foreign countries. C) the recent introduction of the foreign bond. D) slower technological innovation in foreign markets.
Which of the following is subtracted from net national product to arrive at national income?
a. net income of foreigners b. depreciation c. indirect business taxes d. transfer payments
Development assistance is designed to encourage a developing country to
a. increase consumer goods today. b. restrict the inflow of foreign direct investment. c. invest in its capital stock. d. reduce labor productivity.