Income elasticity is defined as the:
A. percentage change in demand divided by the percentage change in income.
B. change in income divided by the change in demand.
C. percentage change in income divided by the percentage change in demand.
D. change in demand divided by the change in income.
Answer: A
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In country X, the average yearly salary of 50-year-olds with 16 years of education is $50,275, while the average yearly salary of 50-year-olds with 12 years of education is $36,265
According to this data, four additional years of education are likely to be correlated with higher future wages of about: A) 24 percent. B) 38 percent. C) 50 percent. D) 88 percent.
The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. If the market is perfectly competitive and unregulated, at the equilibrium level of output,
A) resource allocation is efficient. B) resource allocation is inefficient. C) too few tons of fertilizer are produced. D) consumers must pay too high a price for fertilizer.
The graph shown portrays a subsidy to buyers. The amount of money spent on this subsidy by the government is:
A. $3,600.
B. $2,400.
C. $6,000.
D. $800.
It is ______ that a tariff, unlike a quota, provides revenues to the government; it is ________ that a quota directly limits the quantity of a nation's imports from a specific country.
A. true; true B. false; false C. false; true D. true; false