When Mary earned $3,200 per month, she bought 2 concert tickets each month. Now her monthly income is $5,600, and the number of concert tickets she purchases has risen to 3 per month
Mary's income elasticity of demand for concert tickets equals ________ and the tickets are a(n) ________ good for Mary. A) -1.36; normal
B) -0.21; inferior
C) +0.21; complementary
D) +0.73; normal
D
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Suppose disposable income increases from $5 trillion to $6 trillion. As a result, consumption expenditure increases from $4 trillion to ________. This result means the MPC equals ______.
A. $4.5 trillion; 4.50 B. $5 trillion; 0.80 C. $4.8 trillion; 0.80 D. $6 trillion; 1.00
State and local governments generate revenue from all of the following sources except
a. sales taxes. b. the federal government. c. corporate income taxes. d. customs duties.
Investment, as a part of GDP, includes:
A. any goods that are bought by - firms who plan to use those purchases to produce other goods and services in the future, rather than consuming them. B. any item you buy that you are looking for a return on over time. C. consumption goods that are purchased by households. D. spending on productive inputs such as stocks, bonds, and other types of financial instruments.
All other things unchanged, a tax on a product that leads to an increase in the cost of production would:
A) lead to an increase in supply. B) lead to a decrease in demand. C) result in an increased price. D) lead to a decrease in supply.