If the income elasticity of a good is ?1.8, this means this good is a(n):
A. luxury good.
B. substitute good.
C. complementary good.
D. inferior good.
Answer: D
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In a benefit-cost analysis, the determination of feasibility
a. can be made by finding out if PVB/PVC is greater than unity b. is not critical and therefore is an optional step c. can be accomplished by finding out if PVNB is greater than zero d. all of the above e. (a) and (c) only
In the figure above, with international trade the United States ________ million T-shirts per year
A) imports 20 B) exports 20 C) imports 40 D) imports 60 E) exports 40 The figure above shows the U.S. market for airplanes, where SUS is the domestic supply curve and DUS is the domestic demand curve. The United States trades freely with the rest of the world. The world price of an airplane is $150 million.
What are the conditions for price discrimination?
What will be an ideal response?
By requiring car producers to install emission control devices on cars, the government forces these producers to internalize some of the external costs of auto pollution. This will lead to the equilibrium price of cars:
A. increasing and the quantity increasing. B. decreasing and the quantity increasing. C. decreasing and the quantity decreasing. D. increasing and the quantity decreasing.