Since housing generally represents a large part of most household budget, the elasticity of demand for housing is likely to be large.
Answer the following statement true (T) or false (F)
True
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If the price level in Great Britain increases from 102 to 105 (holding all else constant), real wealth ________ and there is a movement ________ along Great Britain's aggregate demand curve
A) decreases; upward B) increases; upward C) decreases; downward D) increases; downward
At the end of the 1980s, bank regulators ________ various standards by which bank performance is measured thereby ________ banks willingness to lend
A) lowered, increasing B) raised, increasing C) lowered, decreasing D) raised, decreasing
Suppose a monopolist chooses the price and production level that maximizes its profit. From that point, to increase society's economic welfare, output would need to be increased as long as
a. average revenue exceeds marginal cost. b. average revenue exceeds average total cost. c. marginal revenue exceeds marginal cost. d. marginal revenue exceeds average total cost.
In the 1980s, ___________________ strictly adhered to the communist credo, "From each according to his ability, to each according to his needs".
A. China, but not the Soviet Union B. The Soviet Union, but not China C. Both China and the Soviet Union D. Neither China nor the Soviet Union