If a consumer doubles her quantity of ice cream consumed when her income rises by 25%, then her income elasticity of demand for ice cream is
A) 8.0.
B) 4.0.
C) .25.
D) .08.
B
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Starting from long-run equilibrium, a large tax increase will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. recessionary; lower; potential B. expansionary; lower; potential C. expansionary; higher; potential D. recessionary; lower; lower
There are stereotypes (myths) about home-based businesses. Which of the following statements is a stereotype?
a. Most home-based businesses are run by women such as child care centers b. Most home-based businesses are run by men on computers c. It is hard to have a home-based business, too many conflicts d. Most home-based businesses are financially stable, rewarding
Which of the following would NOT be a barrier to entry for a particular market?
A) ownership of a patent B) low cost of obtaining initial capital C) the presence of economies of scale D) government regulation
All of the following are criticisms of the Lorenz curve analysis EXCEPT
A) income-in-kind is not figured in. B) the inequality gap is not an issue that economists study. C) different sizes of households are ignored. D) it does not take into consideration lifetime earnings.