The income elasticity of demand is

A) positive for a normal good.

B) zero for an inferior good.

C) less than one for an income elastic normal good.

D) Only answers A and B are correct.

E) Answers A, B, and C are correct.

The cross elasticity of demand for film cameras and film is likely to be

A) positive because they are substitutes.

B) positive because they are complements.

C) negative because they are substitutes.

D) negative because they are complements.

E) negative because with the advent of digital cameras, film, and film cameras are inferior goods

An oligopoly firm is similar to a monopolistically competitive firm in that

a) both firms face the prisoner's dilemma

b) both firms operate in a market in which there are entry barriers

c) both firms have market power

d) both firms are in industries characterized by an interdependent firm

What are the steps in the scientific method?

Rank the following four goods from lowest income elasticity of demand to highest income elasticity of demand. Briefly explain your ranking.

Bread

The slope of the production possibility frontier is determined by the ___ of expanding production of one good, measured by how much of the other good would be lost.

A. absolute advantage

B. relative cost

C. opportunity cost

D. comparative advantage

Why is a long-run supply curve flatter than a short-run supply curve? Select one:

A. Firms can enter and exit a market more easily in the long run than in the short run.

B. Long-run supply curves are sometimes downward sloping,

C. Competitive firms have more control over demand in the long run.

D. Firms in a competitive market face economies of scale in the long run.

The first economist(s) to formally suggest that trade was a win-win proposition was

A. David Ricardo

B. The mercantilists

C. David Hume

D. Adam Smith

If marginal revenue slopes​ downward, which of the following is​ true?

A. The firm must increase its price to sell a larger quantity.

B. The firm is unable to adjust the price when the quantity sold changes.

C. The firm must decrease its price to sell a larger quantity.

D. The firm must decrease its price if it wants to continue selling the same quantity.

The cross elasticity of demand for butter and margarine is likely to be

A) positive because they are substitutes.

B) positive because they are complements.

C) negative because they are substitutes.

D) negative because they are complements.

E) positive because they are normal goods.

What is the cause of social stratification?

What happens in a budget deficit?

Over time, what happens to housing shortages caused by rent control?

A. They increase because the demand and supply curves for housing are more elastic in the long run.

B. They increase because the demand and supply curves for housing are more inelastic in the long run

C. They decrease because the demand and supply curves for housing are more inelastic in the long run.

D. They decrease because the demand and supply curves for housing are more elastic in the long run

What currency is backed by a commodity?