Which of the following is inversely related to consumption spending?
a. Wealth
b. Interest rates
c. Disposable income
d. Optimism about future income
e. None of the above.
B
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When the firm in the figure above maximizes its profit, it earns an economic profit of
A) $3,125. B) $6,250. C) $9,375. D) $5,625. E) None of the above answers are correct because the firm incurs an economic loss.
If the demand curve for comic books is expressed as Q = 10,000 * p-1, then demand has a unitary elasticity
A) only when p = 10,000. B) only when p = 100. C) always. D) never.
Suppose the income elasticity of demand for used jet skis is 3.5. If the level of income decreases by 1 percent, the number of used jet skis sold will, ceteris paribus,
A. Rise by 0.29 percent. B. Fall by 0.29 percent. C. Rise by 3.5 percent. D. Fall by 3.5 percent.
In economics
A) both resources and wants are limited. B) both resources and wants are unlimited. C) resources are limited but wants are unlimited. D) resources are unlimited but wants are limited.