The income elasticity of demand for housing property is exactly 1.40 . Due to a recession, you expect incomes to drop by 5% next year. How will consumers adjust their purchase for housing property?
a. Buy 5% more houses
b. Buy 5% fewer houses
c. Buy 7% more houses
d. Buy 7% fewer houses
d
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When a taxed good is normal, using the (uncompensated) demand curve to estimate deadweight loss will over-state the actual deadweight loss.
Answer the following statement true (T) or false (F)
Workers employed in jobs that do not utilize their productive talents or experience are considered
a. structurally unemployed b. structurally employed c. discouraged workers d. underemployed workers e. untrainable
Statistical discrimination in the automobile insurance industry means that young male drivers who drive ________ will pay ________ rates relative to the claims they generate.
A. recklessly; higher B. slowly; lower C. carefully; lower D. carefully; higher
When the central bank sells $1,000,000 worth of government bonds to the public, the money supply:
A. increases by $1,000,000. B. decreases by $1,000,000. C. decreases by less than $1,000,000. D. decreases by more than $1,000,000.