When consumers' incomes increased 10 percent, the quantity of milk bought increased 5 percent. This result means
A) the demand for milk is income elastic.
B) milk is a necessity.
C) milk is a luxury.
D) milk is an inferior good.
B
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In European countries where it is hard to fire an employee:
A. employers are reluctant to hire workers. B. employers instead rely on undocumented transient workers. C. employers try hard to train workers well. D. employers often treat workers very poorly.
Recall the Application about the impact inflation has on your potential future salary and the repayment of student loans to answer the following question(s).In analyzing the costs involved for student loans in the face of rising prices, this Application is addressing the economic concept of:
A. the marginal principle. B. the principle of voluntary exchange. C. the principle of diminishing returns. D. the real-nominal principle.
The quantity of goods and services that can be produced by one worker or by one hour of work is referred to as
A) human capital. B) labor productivity. C) technology. D) real GDP.
When the domestic currency is initially overvalued in a fixed exchange rate regime, the central bank must intervene in the foreign exchange market to ________ the domestic currency, thereby allowing the money supply to ________
A) purchase; decline B) sell; decline C) purchase; increase D) sell; increase