If bus travel is an inferior good, then its income elasticity of demand will be:
a. strictly greater than one.
b. positive.
c. equal to zero.
d. negative.
d
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If the price of Coca-Cola increases from 40 cents to 50 cents per can and the quantity demanded decreases from 100 cans to 50 cans, then the value of the price elasticity of demand for Coca-Cola is:
A. unit elastic. B. elastic. C. inelastic. D. perfectly inelastic. E. perfectly elastic.
The multinational organization that aims to promote world economic growth by fostering financial stability is the
A) International Monetary Fund. B) World Trade Organization. C) World Bank. D) United Nations.
By the permanent-income hypothesis, the long-run marginal propensity to consume is
A) j. B) k. C) kj. D) k - j. E) k/j
The basket of goods in the consumer price index changes
a. occasionally, as does the group of goods used to compute the GDP deflator. b. automatically, as does the group of goods used to compute the GDP deflator. c. occasionally, whereas the group of goods used to compute the GDP deflator changes automatically. d. automatically, whereas the group of goods used to compute the GDP deflator changes occasionally.