If an individual's housing purchases are always a constant fraction of income, then the income elasticity of demand for housing is
a. greater than one.
b. equal to one.
c. less than one.
d. Cannot be determined from the available information.
b
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The final settlement of the United States v. Microsoft case, in part:
A. requires that Microsoft provide technical information to competing companies so they can develop software programs that work as well with Windows as Microsoft's own products. B. broke up Microsoft into two competing firms. C. found Microsoft not guilty of violating the Sherman Act. D. forced Microsoft to sell off its major applications programs such as Word and PowerPoint.
Assume the standard trade model with two countries (Alpha and Beta), two goods (food and drink), and two factors of production (land and labor). Further assume that Alpha is relatively labor-abundant and food is relatively land-intensive. According to the Heckscher-Ohlin theory, Alpha has a comparative advantage in the production of
A. both goods. B. neither good. C. drink. D. food.