The income elasticity of demand for shoes is estimated to be 1.50 . We can conclude that shoes:
a. have a relatively steep demand curve.
b. have a relatively flat demand curve
c. are a normal good.
d. are an inferior good.
c
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In the foreign exchange market, which of the following shifts the supply curve of dollars leftward?
A) The current exchange rate falls. B) The expected future exchange rate falls. C) The current exchange rate rises. D) The expected future exchange rate rises. E) None of the above answers is correct.
Which of the following is TRUE regarding the circular flow diagram?
I. "Aggregate income" is the flow of income earned by firms. II. Retained earnings are considered income earned by firms rather than part of households' income. III. The government, households, and firms all have transactions in the goods market. A) I only B) I and II C) I and III D) III only