If the market demand for oranges is relatively inelastic with respect to price, orange consumers
A) pay no attention to price in their purchasing decisions.
B) will buy fewer oranges at any higher price and will spend less money on oranges.
C) will buy fewer oranges at any higher price but will spend more money on oranges.
D) will buy more oranges at any higher price.
E) will buy more oranges only if their incomes increase.
C
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For resources with vertical supply curves, earnings comprise of both economic rent and transfer earnings
a. True b. False Indicate whether the statement is true or false
A potential drawback to the big-push strategy in LDCs is that
a. supply bottlenecks may occur that would undermine the all-at-once development process b. there is a problem in choosing which sectors to develop first c. private firms will avoid making the planned investment d. it calls for vast movements of resources, including labor, which may not be possible because people are disinclined to move e. it depends primarily on foreign aid which has proved to be an unreliable source of investment funding
According to the traditional (crowding-out) view, which of the following is most likely to result if a substantial portion of government expenditures is financed by borrowing rather than taxation?
a. no change in interest rates and an increase in saving b. higher interest rates and an outflow of foreign capital c. higher interest rates and a reduction in private domestic investment d. lower interest rates and an inflow of foreign investment
Which of the following provides a measure of the overall fit of a regression?
A. The t-statistic and the P-value B. P-value C. t-statistic D. F-statistic