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When consumer income increased from $5,000 to $6,000, the qu

When consumer income increased from $5,000 to $6,000, the quantity demanded for a product falls f… Show more When consumer income increased from $5,000 to $6,000, the quantity demanded for a product falls from 100 units to 70 units. The point income elasticity of the product is Select one: a. 1.5 b. -1.5 c. 3. d. -3. e. 2.5. A consumer maximizes utility where Select one: a. the marginal utilities per dollar spent on each good are as equal as possible. b. the total utilities per dollar spent on each good are as equal as possible. c. the quantities of each good are as equal as possible. d. marginal utility reaches a maximum. e. total utility is equal to zero. The balance sheet of a depository institution lists Select one: a. loans to the institution as assets. b. excess reserves as liabilities. c. checkable deposits as liabilities. d. required reserves as liabilities. e. loans from the institution as liabilities. What accounts for specialization? Select one: a. People specialize where opportunity costs are at a maximum. b. People specialize where their opportunity costs are lowest. c. People do not specialize. d. People specialize in the activity that pays the highest wage. e. People specialize in the activity that they enjoy the most, no matter what the salary is. Which of the following items is most likely to provide a consumer with disutility? Select one: a. The first slice of pizza b. The first taste of an ice cream cone on a hot day c. The first sip of hot chocolate on a cold day d. All of the above. e. None of these choices. When it is observed that as the price of Mercedes-Benz cars rises, the quantity demanded also rises, what might one likely explanation be? Select one: a. It is impossible for the quantity demanded of any good to rise as its price increases. b. Substitute goods have probably flooded the market. c. People’s incomes have declined significantly across all income levels. d. As the price of the Mercedes-Benz goes up, ownership of it becomes more prestigious. e. The car is an inferior good. • Show less

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