If the income elasticity for a particular good is 0.8, we would expect to see that good
a. taxed more often
b. consumed in wealthier countries
c. on supermarket shelves
d. consumed in high-income neighborhoods
e. consumed in low-income communities
A
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
A firm produces its product using both capital and labor. When it does not change its capital usage, but doubles its labor input, its output increases by less than 50 percent. Which of the following is the most likely explanation of this finding?
A) the principle of opportunity cost B) the spillover principle C) the principle of diminishing returns D) the marginal principle
The three major responsibilities of the ________ are legislative power, control over the budget, and supervision of executive decisions.
A) European Commission B) European Council C) European Parliament D) European Court of Justice
According to the following figure, the equation for demand is
A. Q = 4,000 - 50P. B. Q = 50 - 80P. C. P = 4,000 - 50Q. D. P = 4,000 - 80Q. E. none of the above