If you buy 10% more compact discs in response to a 20% increase in income, your income elasticity for compact discs is ______.

A. 0.5
B. 1.0
C. 2.0
D. 0.0


A. 0.5

Economics

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Price ceilings in the U.S. on retail gasoline sales in the 1970s caused

A) massive and prolonged shortages. B) increased advertising of gasoline. C) longer hours of operation at most service stations. D) poor people to be assured of an adequate supply of gasoline.

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If a monopolistically competitive firm breaks even, the firm is earning as much in this industry as it could in any other comparable industry

Indicate whether the statement is true or false

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Automatic stabilizers are so-named because

A) they are automatically undertaken by the Federal Reserve Bank to reduce budget deficits. B) they occur automatically when real GDP changes. C) the policy suggestions of the Council of Economic Advisors are automatically followed. D) the policy suggestions of the Office of Management and Budget are automatically followed.

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Strikes are a form of legitimized extortion by which workers withhold labor to extract higher returns for management

Indicate whether the statement is true or false

Economics