For necessities, income elasticity is any value:
A. less than 0.
B. between 0 and 1.
C. greater than 1.
D. greater than 0.
Answer: B
You might also like to view...
Normal profit is
A) part of the firm's opportunity costs. B) the same as economic profits. C) part of the firm's explicit costs. D) Answers A and B are correct. E) Answers A and C are correct.
If people base their spending decisions more on permanent income than current income, then: a. consumption spending will be more responsive to a temporary change in income than a change in permanent income. b. shifts in aggregate supply will be less predictable than if spending was based on current income
c. consumption spending will fluctuate more widely than if such spending was determined by current income. d. shifts in short-run aggregate supply will be more predictable than if spending was based on current income. e. attempts to fine-tune the economy with temporary tax rate adjustments will be less effective.
Which of the following is INCORRECT?
a. Emissions limits in PSD areas are more stringent than those in nonattainment areas b. New Source Performance Standards are technology-based and defined by the EPA c. Emissions limits for existing sources are more lenient than for new sources d. Technology-based standards used to control stationary sources are applied uniformly
Suppose that real domestic output in an economy is 2400 units, the quantity of inputs is 60, and the price of each input is $30. All else equal, if the price of each input decreased from $30 to $20, productivity would:
A. increase from $50 to $60 and aggregate supply would decrease. B. increase from $60 to $70 and aggregate supply would increase. C. increase from $40 to $90 and aggregate supply would decrease. D. remain unchanged and aggregate supply would increase.