Assume That the Income Elasticity of a Basic Microwave Oven

question 45

Multiple Choice

Assume that the income elasticity of a basic microwave oven is 4.8 and the price elasticity of the same product is 1.2.In a small town,where a recession hit hard and the average income fell by about 5%,would a 5% price cut in microwave ovens help producers get rid of a new shipment of inventories?

• A) Yes,microwave ovens are price elastic.
• B) No,microwave ovens are price inelastic.
• C) Yes,microwave ovens are income elastic.
• D) No,microwave ovens are income inelastic.
• E) Probably not,since the effect of the decrease in income is more significant than the price decrease.

Understand the importance of determining the purpose of an assessment before its selection and administration.

Learn the different methods of sharing test results with clients and the appropriate contexts for each.

Grasp the ethical considerations and requirements of informed consent in the counseling process, including what information must be disclosed to clients.

Understand the concept and importance of validity in educational and psychological testing.

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Definitions:

Encourage Employees

The act of motivating and inspiring workers to achieve personal and organizational goals through various means, including recognition and rewards.

Continue To Work

The ongoing commitment or action of remaining employed or engaging in work activities, possibly despite challenges or reaching retirement age.

Online Applications

Forms or processes by which individuals can apply for jobs, memberships, services, or other programs through the internet.

Recruiting Costs

Expenses incurred by an organization in the process of finding and hiring new employees.