If the income elasticity for lobster is 0.4, a 40 percent increase in income will lead to a:
A. 16 percent increase in demand for lobster.
B. 10 percent drop in demand for lobster.
C. 4 percent increase in demand for lobster.
D. 20 percent increase in demand for lobster.
Answer: A
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Environmental damage
a. cannot be reduced to zero. b. is inevitable where humans exist. c. tends to increase as long as benefits outweigh the costs to the damagers. d. All of the above are correct.
Which of the following best describes the relationship between economic freedom and real per capita Gross Domestic Product (GDP)?
What will be an ideal response?
Suppose that the return on assets other than bonds falls. In the bond market this will result in a(n):
A. increase in the price of bonds. B. movement down the bond demand curve. C. shift to the left of the bond demand curve. D. shift to the left of the bond supply curve.
Which of the following is a determinant of the price elasticity of demand for an item?
A) the availability of a close substitute for the item B) the percentage of a consumers budget allocated to expenditures on the item C) the amount of time available to adjust to a change in the price of the item D) All of the above are correct.