The income elasticity of demand for jewelry is 2. Other things equal, a 10 percent increase in consumer income will:
A. decrease the quantity of jewelry purchased by 20 percent.
B. increase the quantity of jewelry purchased by 20 percent.
C. decrease the quantity of jewelry purchased by 10 percent.
D. increase the quantity of jewelry purchased by 10 percent.
Answer: B
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Refer to Figure 2-4. Consider the following events:
a. an increase in the patent protection period to 75 years b. a hurricane that destroys a substantial portion of a nation's capital stock c. the implementation of a secure and enforceable property rights system Which of the events listed above could cause a movement from W to Z? A) a, b, and c B) a only C) a and c only D) a and b only E) b and c only
A continuing resolution is: a. an agreement that requires Congress to balance the budget on an annual basis
b. an agreement that allows Congress to have too much control over the budgetary process. c. an agreement that allows agencies to spend at the rate of the previous year's budget. d. a decision made by congressional committee about the federal spending and revenue levels for five years. e. a guaranteed benefit for those who qualify for government transfer programs.