If a 5 percent decrease in income leads to a 15 percent decrease in the demand for a good, the income elasticity of demand equals
A) -1/3 and the good is an inferior good.
B) 1/3 and demand for the good is income elastic.
C) 3 and the good is a normal good.
D) -3 and the demand for the good is income inelastic.
E) 3 and the good is an inferior good.
C
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High interest rates might cause a corporation to ________ building a new plant that would provide more jobs
A) complete B) consider C) postpone D) contemplate
Which of the following is an advantage of using a credit card? a. Credit cards help account holders tap directly into their checking account. b. Credit cards help account holders get a loan from the card issuer
c. Credit cards require a PIN number, and are therefore safe. d. Credit card holders can earn a fixed interest on their accounts. e. Credit cards help eliminate the use of money.
For a price-taking firm, marginal revenue
A. is the addition to total revenue from producing one more unit of output. B. decreases as the firm produces more output. C. is equal to price at any level of output. D. both a and b E. both a and c
?19742015Minimum wage per hour$ 2.00$ 7.25Weekly income from minimum wage$80.00$290.00Cost of a standard basket of goods$47.00$236Number of baskets per week1.701.23
Use Table 2.5 above to answer the question. Comparing the minimum wages between 1974 and 2015 addresses 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.