QUESTION 1

_____ is widely regarded to be the father of modern economics.

1. David Ricardo
2. Adam Smith
3. James Buchanan
4. Kenneth Arrow

QUESTION 2

For each of the seven years leading up to 2019 Jon was extremely rich; his annual income in each of those years was in the millions of dollars. Jon also loves wristwatches. He loves to buy and to wear them. In 2020, however, the covid lockdown caused Jon's income to fall dramatically. It fell in 2020 to less than $40,000. As a result of this fall in Jon's income, economists predict that the elasticity of Jon's demand for wristwatches will

1. fall
2. rise
3. remain unchanged
4. too little information to tell