If a product is a normal good, then its income elasticity of demand is
A) zero.
B) positive.
C) negative.
D) indeterminate.
E) greater than 1.
B
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For the typical student, taking an introductory course in economics should
a. turn the student into an economist. b. teach the student solutions to most social problems. c. teach the student how to answer complex social questions. d. help the student learn to make rational decisions. e. All of the above are correct.
When would a profit-maximizing monopolist that operates with no government intervention choose to produce the competitive level of output?
What will be an ideal response?
Refer to Figure 9.9. Now suppose an import quota of 3000 trucks is imposed. The quota will decrease the revenue of foreign firms by
A) $0. B) $2,500. C) $7,500,000. D) $11,250,000. E) $13,125,000.
Use the idea of interpersonal comparisons of utility to argue for a progressive income tax system where people in higher income brackets are charged higher tax rates on their extra income