Which of the following equations would indicate income elasticity of demand?
a. +20% × +10% = +200
b. +20% + +10% = +30
c. +20% ¸ +10% = +2
d. +20% – +10% = +10
c. +20% ¸ +10% = +2
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All points on the firm's expansion path
a. give the firm the maximum possible profit. b. minimize the firm's cost of producing some level of output. c. have the same long-run average cost. d. make the marginal product of labor equal to the marginal product of capital.
The daily turnover in the foreign exchange market is:
A) millions of dollars. B) billions of dollars. C) trillions of dollars. D) declining in the last decade.
Money exchanges are more efficient than barter because:
a. money exchanges do not require a double coincidence of wants. b. the government guarantees the value of money. c. money usually has an intrinsic value. d. money is backed by a physical commodity. e. opportunity costs are higher with barter trades.
The second stage of economic analysis includes asking
a. if the process an individual uses to make decisions is rational or not. b. what may cause preferences to change. c. how the optimal solution would change if constraints change. d. what other criteria might be used to evaluate an outcome.