If the income elasticity of a good is negative, say –1.8, we can infer that the good is a(n)
a. luxury good, such as holiday travel
b. substitute good, such as Pepsi, with Coke available
c. complementary good, such as Pepsi, with a candy bar available
d. inferior good, such as a non-color televison
e. essential good, such as food
D
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Use the following graph of the demand for noodles to answer the question below.
Refer to the three demand curves for noodles. Which of the following would shift the demand for noodles from D1 to D2?
A. an increase in the number of buyers of noodles B. People hear that eating noodles can have negative health effects. C. a decrease in the price of noodles D. a decrease in the number of buyers of noodles
The changing of government expenditures or taxes to achieve national economic goals is
A) inflationary fiscal policy. B) automatic fiscal policy. C) recessionary fiscal policy. D) discretionary fiscal policy.
In a fixed exchange rate system, speculation regarding an expected revaluation or devaluation of a currency makes it more difficult to maintain the existing exchange rate
Indicate whether the statement is true or false
Recall the Application about a South African consumer lender that offered different interest rates in loan offers via mass mailings to answer the following question(s).According to the Application, the number of women who accepted a particular loan offer from the mass mailings ________ when the offer letter included the picture of ________.
A. increased; a man, rather than the picture of a woman B. increased; a woman, rather than the picture of a man C. decreased; either a man or a woman D. was unaffected; either a man or a woman