Median household income is $50,000 per year. The typical household spends about $125 per year on milk, which has an income elasticity of about 0.07. From this information, we can conclude that
A) milk is a luxury.
B) milk is a Giffen good.
C) the income effect from a change in the price of milk is very large.
D) the income effect from a change in the price of milk is very small.
D
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Pam did not get the job she wanted. Knowing her characteristics (listed below), which one factor most contributed to her NOT getting the job offer?
a. she put away her phone in the interview b. she looked down for most of the interview c. she greeted the receptionist when she arrived d. she wore a conservative business professional suit
Nominal rates of protection
A) are always greater than effective rates of protection. B) are always smaller than effective rates of protection. C) refer to the tariffs placed on intermediate goods used to make the final good or service. D) cannot be negative.