If average consumer incomes increase proportionately faster than the demand for a product, then the income elasticity of demand for the product is:
A. equal to 1.
B. greater than 1.
C. greater than zero but less than 1.
D. zero.
Answer: C
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An upward-sloping Engel curve indicates that
a. the good is normal. b. the good is inferior. c. demand for this good is elastic. d. demand for this good is inelastic.
If the price of capital is $24, the price of labor is $15, and the marginal product of capital is 16, the least costly combination of capital and labor requires that the marginal product of labor be ________
Fill in the blank(s) with correct word
The demand curve faced by a pure monopolist:
A. may be either more or less elastic than that faced by a single purely competitive firm.
B. is less elastic than that faced by a single purely competitive firm.
C. has the same elasticity as that faced by a single purely competitive firm.
D. is more elastic than that faced by a single purely competitive firm.
During the twentieth century, the largest budget deficits as a percentage of GDP occurred
A) during the 1990s. B) during the 1980s. C) during the Vietnam war. D) during World Wars I and II.