Suppose That the Economy Is Growing and That Incomes Increase

question 1

Multiple Choice

Suppose that the economy is growing and that incomes increase by 8%. The demand for travel by bus decreases by 12%. What is the income elasticity for bus travel?

• A) -1.5
• B) 1.5
• C) .66
• D) 66.67

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Definitions:

Personality Factors

Characteristics or traits that form an individual's distinctive character, influencing behavior and interactions.

Competencies

A combination of knowledge, skills, behaviors, and attitudes that contribute to personal effectiveness and performance in a professional or organizational context.

Supervisory-level Managers

Individuals in an organization who have direct oversight and responsibility for front-line employees, focusing on day-to-day operations and performance.

Technical Skill

Refers to the ability to carry out tasks that require expertise in specific domains or industries, often relating to practical and mechanical operations.