Income elasticity of demand is expected to be _____
a. relatively high for necessities
b. positive for most products
c. relatively low for luxuries
d. negative for most products
e. zero for most products
b
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A financial asset is considered ________ if it can be bought or sold in a financial market
A) a bond B) a security C) a stock D) liquid
In Econoland in 2005, people with incomes between $20,000 and $30,000 paid 12 percent of their income in taxes and people with incomes between $30,001 and $40,000 paid 15 percent. In 2005, the CPI in Econoland equaled 1.20, and it increased to 1.26 in 2006. If the government of Econoland wants to keep households with a given real income from being pushed up into a higher tax bracket by inflation, the $20,000-to-$30,000 bracket will be changed in 2006 to:
A. $21,000 to $31,500. B. $25,200 to $37,800. C. $24,000 to $37,800. D. $15,873 to $23,810.