Normal goods have positive income elasticities
a. True
b. False
Indicate whether the statement is true or false
True
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From 1970 to 2007 the quantity of M1 fell from 20 percent of GDP to less than 10 percent. This change is because the ownership of credit cards ________ during this time period since ________
A) expanded from 18 percent to 76 percent; credit cards became more widely available and utilized B) expanded from 18 percent to 76 percent; there were several recessions during that period C) fell from 76 percent to 18 percent; credit cards became less widely available and utilized D) remained unchanged; credit cards do not affect the quantity of money E) fell from 76 percent to 18 percent; there were several recessions during that period
Increasing the income tax rate ________ the ________
A) does not change; supply of labor B) decreases; supply of labor C) increases; supply of labor D) decreases; demand for labor E) increases; demand for labor
Identify the public good in the following
a. A small library with a limited collection of books b. A crowded children's park in your neighborhood c. The visit to a museum which charges a nominal entry fee d. The scenic view of the ocean from a beach
What are the accurate coordinates of the new equilibrium price?
a. P1; Q2
b. P1 Q1
c. P2; Q1
d. P2; Q2