For a normal good, the income elasticity of demand is:
A) positive or negative depending on the share of income accounted for by the good.
B) always equal to 1.
C) positive if income increases and negative when income declines.
D) always positive.
D
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If the nominal exchange rate between the American dollar and the Canadian dollar is 0.89 Canadian dollars per American dollar, how many American dollars are required to buy a product that costs 2.5 Canadian dollars?
A) $1.32 B) $2.23 C) $2.75 D) $2.81
If the marginal cost and marginal revenue curves intersect at two different points, then maximum profit occurs at
a. the output level where the MC curve crosses the MR curve from below b. the output level where the MC curve crosses the MR curve from above c. both points d. an output level between the two points e. an output level beyond the second point
Carlos has been invited to go skiing for the afternoon with his friends. It will cost $40 for a lift ticket. It is likely Carlos will:
A. overvalue the benefit of skiing. B. find it difficult to place a value on what he might do instead of skiing. C. undervalue the opportunity cost of his afternoon. D. All of these are true.
Which of the following is an example of entrepreneurship?
A) a student who produces and sells t-shirts at a football game B) all of the above C) an employee who figures out how to make her services more valuable to the business for which she works D) a 15-year old who operates a lemonade stand during hot summer days