For which product is the income elasticity of demand most likely to be negative?
A. bread
B. computer software
C. used clothing
D. apps for iPads
Answer: C
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An increase in the unemployment rate from 15 percent to 20 percent might be illustrated as: a. a movement up and to the left from one point along the production possibilities curve to another. b. a movement from a point on the production possibilities curve to an interior point
c. a movement from an interior point to a point on the production possibilities curve. d. a movement from a point inside the production possibilities curve to one closer to the origin.
Which of the following is true of economics? a. It deals with the study of the functioning and development of human society. b. It deals with the study of states and the systems of government in those states. c. It deals with the study of the evolution of human society
d. It deals with the study of how scarce resources are allotted.
Matt loses his job and decides to sit on the beach rather than looking for work the next few months. Other things the same, the unemployment rate
What will be an ideal response?
Suppose Joe purchases 10 lottery tickets per month when his monthly income is $200. Joe receives a raise at work, giving him an extra $40 per month in take-home pay, and Joe now purchases 15 lottery tickets per month. What is Joe's income elasticity of demand for lottery tickets?
a. 2.5 b. 1. c. 0.4. d. 0.25.