For normal goods, income elasticity is:
A. greater than 0.
B. equal to 1.
C. greater than 1.
D. less than 0.
Answer: A
You might also like to view...
Refer to Figure 4-8. Suppose that instead of a rent ceiling, the government imposed a price floor of $2,000 per month for apartments. What is the value of consumer surplus after the imposition of the price floor?
A) $6,000 B) $30,000 C) $100,000 D) $240,000
Reductions in inflation have no cost in terms of lower output in ________
A) traditional Keynesian theory B) new Keynesian theory C) real business cycle theory D) traditional and new Keynesian theory
One characteristic of a public good is that it
A) is available for consumption by only a few individuals at any particular time. B) always eliminates the free-rider problem. C) can be consumed simultaneously by many individuals. D) can be easily subdivided into small units.
What is "crowding-in" effect? Explain the factors which determine the strength of the crowding in effect