If the income elasticity of demand for a good is negative, then the good must be an inferior good
a. True
b. False
Indicate whether the statement is true or false
True
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The elasticity of supply for paintings by Monet is
A) perfectly elastic. B) perfectly inelastic. C) unit elastic. D) inelastic.
The trade deficit and federal budget deficit plagued which U.S. presidential administration with high inflation and low levels of production and employment?
(a) Franklin D. Roosevelt (1933–45) (b) Dwight D. Eisenhower (1953–61) (c) John F. Kennedy (1961–63) (d) Ronald W. Reagan (1981–89)
Li works for a wage of $9 per hour. He has 50 hours to devote to work or leisure. If his wage rises to $11 per hour, _____
a. he will spend more time working because his opportunity cost of leisure will rise b. he will spend less time working because his opportunity cost of leisure will rise c. he will spend less time working because his opportunity cost of leisure will fall d. he will spend more time working because his opportunity cost of labor will rise
If the Consumer Price Index was 170 in one year and 180 in the next year, then the rate of inflation from one year to the next was approximately:
A. 7.2 percent. B. 6.3 percent. C. 5.5 percent. D. 5.9 percent.