If one's demand for good X decreases as income rises, the income elasticity of demand for good X is
A) elastic.
B) inelastic.
C) unit elastic.
D) negative.
Answer: D
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In reference to determining the optimal amount of advertising, managers of trade associations face each of following additional challenges except which one?
A) lack of free riders B) the ability for a firm to benefit from advertising that they did not pay for C) difference in the marginal benefits of advertising across firms D) difficulty in prescribing a fair and practical way to share the cost of advertising across firms
To attract more bidders, and more aggressive bidders, to your auction
a. withhold relevant information about the value of the object b. don't allow bidders to know how others are bidding c. allow potential bidders ample time to examine the object being sold d. do not hold oral auctions
Which of the following is the best definition of openness?
a. The average of imports expressed as a share of GDP. b. The average of goods traded in markets expressed as a share of GDP. c. The average of imports and exports expressed as a share of GDP. d. The average trade balance expressed as a share of GDP. e. The average of exports expressed as a share of GDP.
Which of the following statements best depicts laypeople's explanation of the Great Depression at that time?
A. Unions were keeping the good jobs for themselves. B. An oversupply of goods had glutted the market. C. Government policies kept prices too high. D. An oversupply of goods is impossible.