Capital goods

A) are a special type of consumption goods.
B) are consumed because they enhance the enjoyment consumers obtain from other goods and services.
C) are goods used to make consumer goods and services.
D) refer to the expenses that a company incur for producing other types of goods.

Answer: C

Economics

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Speculation would involve using forward contracts and options to reduce the exchange rate risk on future foreign exchange transactions

Indicate whether the statement is true or false

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Sylvia allocates her monthly income between Food and Housing. Her budget share spent on food in a given month is always 30%, and for Sylvia, food is a "necessity" (income elasticity between zero and one)

Derive the maximum and minimum values for the income elasticity of demand for housing.

Economics