Answer:
b. It is a luxury good.
Explanation:
Income Elasticity = 2
The Income Elasticity > 1. So, it is luxury goods. In economics, income elasticity for luxury goods is greater than 1 (i.e. Income Elasticity > 1). So option b is correct.
Answer:
Option (c) is correct.
Explanation:
Andy can produce 24 loaves of bread or 8 pounds of butter:
Opportunity cost of producing 1 pound of butter = (24 ÷ 8)
= 3 loaves of bread
John can produce 8 loaves of bread or 8 pounds of butter:
Opportunity cost of producing 1 pound of butter = (8 ÷ 8)
= 1 loaves of bread
Therefore,
John has a comparative advantage in producing butter because of lower opportunity cost.
Hence, the opportunity cost of producing 1 pound of butter is 3 loaves of bread for Andy and 1 loaves of bread for John.
Answer:
Normative statement
Explanation:
A normative comment makes a conclusion on meaning. Such a decision is the presenter's viewpoint; nobody can "confirm" whether or not the comment is true. Since individuals have different principles, ethical pronouncements also create discord.
An economist whose beliefs allow him to claim that we ought to provide more help to the needy will compete with one whose ideals contribute to a determination that we ought not.
It is not uncommon for people to present an argument as constructive, to render it more compelling for an audience when it already has negative elements. Sources of this are opinion pieces in magazines or on other outlets. That is why it is critical that we can distinguish among constructive and negative statements.
Answer:
Here is a sample of the most common marginalized groups:
GLBT.
Senior citizens.
Racial/Cultural minorities.
Military Combat Veterans.
Persons of below average intelligence.
Hearing, visually, and Physically Challenged Persons.
Persons with a serious and Persistent Mental Illness (SPMI)
Persons with Cognitive Impairments.
Answer:
$500
Explanation:
Calculation for amount that the first bank will be short of reserves, after the check has been cleared
Using this formula
Reserve shortage=Loan granted(check)-Excess reserves
Let plug in the formula
Reserve shortage=$1,000-$500
Reserve shortage=$500
Therefore the first bank will be short of reserves, after the check has been cleared, in the amount of:$500