The income elasticity of demand for a food is unity. A consumer's monthly income is $2,000, of which 20 percent is spent on food. If income doubles, the amount spent on food will be:
A. $400 per month.
B. $1,000 per month.
C. $500 per month.
D. $800 per month.
Answer: D
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The long-run rate of unemployment to which an economy always gravitates is the
A) normal rate of unemployment. B) natural rate of unemployment. C) neutral rate of unemployment. D) inflationary rate of unemployment.
Which of the following countries would find it easiest to achieve rapid growth in per capita GDP?
a. United States b. United Kingdom c. France d. Mexico
Which of the following is true?
A) Entrepreneurs are under-represented among millionaires. B) All of the above are true. C) The parents of successful entrepreneurs almost always have at least a college education. D) Successful entrepreneurs are good at discovering profitable opportunities that have been overlooked by others.
A radio manufacturer is experiencing theft problems at its warehouse and has decided to hire security guards to reduce the thefts. The firm wants to minimize the net cost of warehouse thefts. 
Given the above info, if each security guard is paid $200 a week and the cost of a stolen radio is $50, how many security guards should the firm hire?
A. 1 B. 2 C. 3 D. 4 E. 5