The income elasticity of demand is (mathematically)
A. the percentage change in the portion of a person's budget that they will spend on a good divided by the percentage change in income.
B. the percentage change in quantity demanded divided by the percentage change in income.
C. the percentage change in income divided by the percentage change in price.
D. the percentage change in quantity demanded divided by the percentage change in price.
Answer: B
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A nation's saving equals its ________ income less its spending on ________.
A. real; investment B. nominal; net taxes C. nominal; investment D. current; current needs
The Snowshoe Inn in Vermont charges $259 per room during the winter ski season and $149 during the summer months. The number of rooms available and the operating costs for the inn remain constant throughout the year. What is indicated by these prices?
A. The demand curve shifts out in the summer. B. The demand curve shifts out during the winter months. C. The supply curve shift in during the summer. D. There is a decrease in demand during the winter.
From 1970 to 2007 the quantity of M1 fell from 20 percent of GDP to less than 10 percent. This change is because the ownership of credit cards ________ during this time period since ________
A) expanded from 18 percent to 76 percent; credit cards became more widely available and utilized B) expanded from 18 percent to 76 percent; there were several recessions during that period C) fell from 76 percent to 18 percent; credit cards became less widely available and utilized D) remained unchanged; credit cards do not affect the quantity of money E) fell from 76 percent to 18 percent; there were several recessions during that period
The basis of the benefits of specialization is
a. comparative advantage b. absolute advantage c. size of country d. identical production costs between two countries e. self-sufficiency