The increase in the demand for widgets, shown in the figure above, is the result of an increase in people's incomes from $28,500 per year to $31,500 per year. Therefore, the income elasticity of demand for widgets is
A) 0.25.
B) 0.75.
C) 1.33.
D) 4.00.
D
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Thinking as an economist would, which is TRUE of investment?
A) Investment is putting money into stocks and bonds. B) Investment is a stock concept. C) Investment represents spending on capital goods. D) It is the portion of disposable income that is not used for consumption or saving.
Which of the following biases the CPI to underestimate increases in prices?
a. The substitution bias b. The quality bias c. The new outlet bias d. None of the above
Which of the following is correct?
a. Efficiency deals with the size of the economic pie, and equality deals with how fairly the pie is sliced. b. Equality can be judged on positive grounds whereas efficiency requires normative judgments. c. Efficiency is more difficult to evaluate than equality. d. Equality and efficiency are both maximized in a society when total surplus is maximized.
The actions produced by arm muscles but NOT by leg muscles are __________.
Fill in the blank(s) with the appropriate word(s).