If Matthew raises the price of his muffins from $2 to $3 and his total revenue increases from $35,000 to $38,000 . then
a. the demand for Matthew's muffins in this price range is price elastic
b. the demand for Matthew's muffins in this price range is price inelastic
c. the demand for Matthew's muffins in this price range is unit elastic
d. the percentage change in quantity demanded must exceed the percentage change in price
e. we know this is impossible because it violates the law of demand
B
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Among developed countries, the United States has
A) one of the lower Gini coefficients. B) one of the higher Gini coefficients. C) the most unequal distribution of income. D) an income distribution right about at the median of those countries.
Does low human capital cause poverty or does poverty cause low human capital?
A. The causality works both ways. B. Low human capital causes poverty, not the other way around. C. Poverty causes low human capital, not the other way around. D. There is no causal link between low human capital and poverty.
When Brenda was in college, she worked part-time delivering pizzas and she ate five boxes of macaroni and cheese per week. After graduation, she became a high school teacher and ate only two boxes of macaroni and cheese per week. From this information,
a. macaroni and cheese is a normal good for Brenda b. the law of demand applies to macaroni and cheese for Brenda c. macaroni and cheese are substitute goods d. macaroni and cheese is an inferior good for Brenda e. Brenda's income elasticity of demand for macaroni and cheese is positive
The goal of stabilization policy is to smooth out fluctuations in GDP.
Answer the following statement true (T) or false (F)