Elasticity measures
a. whether a price increase causes quantity demanded to increase or decrease
b. the strength of an economy's tendency to recover from recession
c. the responsiveness of decision makers to changes in prices, income, or other variables
d. the profitability of investment in an industry
e. the long-run flexibility of prices in the economy
C
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We often observe "pseudo-intra-industry trade" between the United States and Mexico. Actually, such trade is consistent with
A) comparative advantage associated with Heckscher-Ohlin model. B) oligopolistic markets. C) optimal tariff issues. D) the Ricardian model of trade. E) the specific factors model of trade.
The velocity of money is
A) the average number of times that a dollar is spent in buying the total amount of final goods and services. B) the ratio of the money stock to high-powered money. C) the ratio of the money stock to interest rates. D) the average number of times a dollar is spent in buying financial assets.
The reason that some corporations grow so big is
A. double taxation. B. that they are a separate entity from their owners. C. that they have limited liability. D. that they cannot be regulated.
Investment spending, capital formation, and rapid technological progress are directly related
a. True b. False Indicate whether the statement is true or false