If the income elasticity of food is 0.72, then food is
A) a necessity and a normal good.
B) a normal good.
C) a necessity.
D) an inferior good.
A
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Consider a demand curve for reckless driving, for which the "price of reckless driving" is interpreted as the probability of having a fatal accident. When could safer cars lead to an increase in total number of driver fatalities?
a. Always. b. Never. c. When the demand curve is relatively flat. d. When the demand curve is relatively steep.
Refer to the scenario above. The hypothesis of the model is that:
A) college graduates will earn 80 percent more than high school graduates. B) college graduates will earn 200 percent more than high school graduates. C) college graduates will earn 107 percent more than high school graduates. D) college graduates will earn 275 percent more than high school graduates.
When the U. S. federal government runs a budget deficit, it borrows money by selling:
a. Treasury bills, notes, and bonds. b. publicly owned land. c. its gold reserves. d. financial assets located in foreign banks.
Given that Sandy can produce 10 economics reports or make 2 sales calls and Tim can produce 2 economics reports or make 1 sales call, we can conclude that
A) Sandy should specialize in economics reports, and Tim should specialize in sales calls. B) Sandy should produce both economics reports and sales calls since she cannot possibly gain from trade with Tim. C) Tim should specialize in producing economics reports, and Sandy should specialize in producing sales calls. D) Tim should produce both economics reports and sales calls.