Author Question: What best describes what happens to the share of income spent on food as income increases? a. The ... (Read 165 times)

tatyanajohnson · **on:** Jun 30, 2018

What best describes what happens to the share of income spent on food as income increases?
a. The share increases.
b. The share decreases.
c. The share stays the same.

Question 2

According to the text, what best explains the price for federal land that would have maximized real GNP?
a. Some price above zero that maximizes government revenues to be redistributed fairly to the people.
b. Some price above zero that minimizes negative environmental externalities.
c. A price equal to zero that eliminates the welfare loss associated with land not used for production.
d. A subsidized price that distributes land based on egalitarian principles.

fatboyy09 · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

b. The share decreases.

Answer to Question 2

c. A price equal to zero that eliminates the welfare loss associated with land not used for production.