The main reason for the high price of antiques is that:
A. supply is relatively elastic and demand increases over time.
B. demand is relatively inelastic and supply increases over time.
C. demand is relatively elastic and supply increases over time.
D. supply is relatively inelastic and demand increases over time.
Answer: D
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What is the difference between a program budget and a line-item budget? Is one more valuable to evaluating the effectiveness of government expenditures? Why?
What will be an ideal response?
Long-term contracts become longer:
A. when spot markets work well. B. when the exchange environment is more complex. C. when marginal costs are declining. D. when specialized investment becomes more important.
If income increases by 10% and, in response, the quantity of housing demanded increases by 7%, then the income elasticity of demand for housing is
A. -1. B. -0.7. C. 0.7. D. 1.43.
Refer to the given data. Suppose that consumption decreased by $2 billion at each level of DI in each of the three countries. We can conclude that the:
Answer the question on the basis of the following consumption schedules. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars.
A. marginal propensity to consume will remain unchanged in each of the three countries.
B. marginal propensity to consume will decline in each of the three countries.
C. average propensity to save will fall at each level of DI in each of the three countries.
D. marginal propensity to save will rise in each of the three countries.