When OPEC raises the price of petroleum, American expenditures on oil imports increase, suggesting that
A. the United States’ elasticity of demand for imported oil is greater than one.
B. the United States’ elasticity of demand for imported oil is less than one.
C. imported oil and domestically produced oil are complementary goods.
D. the short-run elasticity of demand for oil is greater than the long-run elasticity.
Answer: B
You might also like to view...
In a small European country, it is estimated that a $10,000 increase in capital per hour worked will increase real GDP per hour worked by $300. Based on this information, what is the slope of the per-worker production function in this range?
A) 0.03 B) 3.3 C) 33.3 D) 333
An example of direct finance would be when
A) a person purchases a certificate of deposit from a bank. B) a person buys a life insurance policy. C) a person buys 100 shares of stock from a corporation. D) a bank makes a loan to a customer.
Inferior goods typically obey the law of demand because the substitution effect tends to dominate the income effect
a. True b. False
A critical assumption in the classical model is that markets are always clear
a. True b. False