For U.S. consumers, the income elasticity of demand for fruit juice is 1.1. If the economy enters a recession next year and consumer income declines by 2.5%, what is the expected change in the quantity of fruit juice demanded next year?
+2.75%
-27.5%
+27.5%
-2.75%
-2.75%
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Population density varies little between the fifty states
a. True b. False Indicate whether the statement is true or false
The purchasing power parity theory states that
A) exchange rates between any two currencies will adjust to reflect changes in the relative price level of the two countries. B) exchange rates between any two currencies will adjust to reflect change in the relative income growth rates of the two countries. C) the larger the economic growth rate in a country, the less likely its currency will depreciate in value. D) exchange rates cannot be compared over time. E) currencies appreciate as often as they depreciate.
Educational services provided by public schools are:
A. excluded from GDP because they are intermediate goods. B. included in GDP at market prices. C. excluded from GDP because they are not sold in markets. D. included in GDP at cost.
The key role of the WTO is to
A. control world trade B. increase free trade C. manage quotas D. balance world trade