The income elasticity of demand is a measure of the responsiveness of the
A) quantity of a good demanded to changes in income.
B) consumer's income to a change in the price of the goods he or she consumes.
C) quantity of a good demanded to changes in its price.
D) quantity of a good demanded to changes in another good's price.
A
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Which of the following is FALSE regarding the general rule for hiring?
A) Virtually every optimizing rule in economics involves comparing marginal benefits with marginal cost. B) The benefit from added workers is extra output and consequently more revenues. C) The firm hires workers up to the point at which the additional cost associated with hiring the last worker is equal to the additional revenue generated by that worker. D) If any firm hired fewer workers over time, profits would definitely increase at that firm.
If the current account balance of a country is positive, the country's international investment position
A) is positive. B) is zero. C) is negative. D) could be positive, negative, or zero.