Holding everything else constant, the demand for a good tends to be more elastic
A) the more substitutes there are for the good.
B) the less important the product is in consumers' budgets.
C) the shorter the time period involved.
D) the more consumers perceive the good to be a necessity.
A
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According to Robert E. Hall and Charles Jones, successful economic performance requires
A) a favorable infrastructure of rules and institutions. B) minimizing corruption and criminality. C) the use of one of the eight major international languages. D) A and B. E) all of the above.
Under laissez faire, society's decisions about how much of every product to produce depend on
a. consumer preferences only. b. production costs only. c. consumer preferences and production costs. d. neither consumer preferences nor production costs.
Assume a certain firm regards the number of workers it employs as variable but regards the size of its factory as fixed. This assumption is often realistic
a. in the short run but not in the long run. b. in the long run but not in the short run. c. both in the short run and in the long run. d. neither in the short run nor in the long run.
When inflation rises, the nominal interest rate
a. rises, and people desire to hold more money. b. rises, and people desire to hold less money. c. falls, and people desire to hold more money. d. falls, and people desire to hold less money