Last year, Jack's income was $15,000 and he bought 50 bags of potato chips. This year his income is $18,000 and he buys 55 bags of potato chips. Therefore, Jack's
A) income elasticity of demand for potato chips is 0.52.
B) price elasticity of demand for potato chips is 0.52.
C) income elasticity of demand for potato chips is 1.66.
D) price elasticity of demand for potato chips is 1.66.
A
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Which of the following is a macroeconomic statement?
A) Real domestic output of seafood increased 12 percent from 2015 to 2016. B) The U.S. inflation rate was two percent in 2016. C) The price of cell phones decreased by 18 percent last year. D) Motorcycle manufacturer productivity decreased by three percent in 2016.
Recessionary gaps usually lead to
a. structural unemployment. b. cyclical unemployment. c. seasonal unemployment. d. frictional unemployment.
The higher a country's tax rates, the more likely that country will be
a. at the top of the Laffer curve. b. on the positively sloped part of the Laffer curve. c. on the negatively sloped part of the Laffer curve. d. experiencing small deadweight losses.
The social costs of hyperinflation include i) decreases in purchasing power ii) borrowing and lending may cease iii) the value of savings will diminish.
A. i only. B. ii only. C. i, ii, and iii only. D. i and ii only.