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.
A
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The bowed production possibilities curve represents: a. constant opportunity costs
b. decreasing opportunity costs. c. increasing opportunity costs. d. none of the above
Compared to the no-trade situation, when a country imports a good,
a. domestic consumers gain, domestic producers lose, and the gains outweigh the losses. b. domestic consumers lose, domestic producers gain, and the gains outweigh the losses. c. domestic consumers gain, domestic producers lose, and the losses outweigh the gains. d. domestic consumers gain, but domestic producers lose an equal amount.