Which of the following is likely to increase the elasticity of demand for a good?
A. A decrease in the price.
B. A decrease in the availability of close substitutes.
C. A longer period of time.
D. A smaller share of income designated for the good in question.
Answer: C
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Strong growth in the U.S. during the 1990s may have been the result of
a. higher rates of government savings. b. reduced international trade barriers. c. strong labor productivity growth. d. stable inflation. e. All of the above
Under a gold standard,
a. a nation's currency can be traded for gold at a fixed rate b. a nation's central bank or monetary authority has absolute control over its money supply c. new discoveries of gold have no effect on money supply or prices d. prices are constant (there is no inflation and no deflation) e. all international transactions are financed with gold
The GDP of an economy is accurately calculated when: a. the values of both intermediate and final goods are included
b. the values of both intermediate and final goods are excluded. c. the value of intermediate goods are included, while the value of final goods are excluded. d. the value of final goods are included, while the value of intermediate goods are excluded.
The rule of 72 implies that a country with a growth rate of 8 percent will double its income in about:
A. 12 years. B. 6 years. C. 4 years. D. 9 years.