If the price of a good rises by 10% and the percentage decrease in the total amount consumers spend on the good is 5%, then the good is
A. inelastic.
B. elastic.
C. unit elastic.
D. perfectly inelastic.
Answer: B
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Consider two scenarios for a nation's economic growth. Scenario A has real GDP growing at an average annual rate of 2%; scenario B has an average annual growth of 8%. The nation's real GDP would double in about
A. 36 years under scenario A, versus 18 years under scenario B. B. 18 years under scenario A, versus 9 years under scenario B. C. 36 years under scenario A, versus 9 years under scenario B. D. 25 years under scenario A, versus 12.5 years under scenario B.
An important function of international institutions during times of crisis is to
A) make goods nonrival. B) make goods nonexcludable. C) prevent free riding. D) prevent nondiscrimination. E) encourage free riding.
The short-run can be described as:
(a) Less than one year. (b) Period of time over which at least one factor of production is fixed. (c) Period of time over which all factors of production are variable. (d) Either one year or one month dependent upon the industry.
The Board of governors of the Fed
A. are appointed by the House of Representatives. B. has 12 members. C. is headquartered in Washington, D.C. D. have a 7-year term.