If the price elasticity of demand is equal to 2, the good has ________ demand.
A. unitary elastic
B. elastic
C. restrictive
D. inelastic
Answer: B
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The above figure shows the market for pizza. Which figure shows the effect of an increase in the price of a complement such as soda?
A) Figure A B) Figure B C) Figure C D) Figure D
By 2006, 20 percent of the mortgage market consisted of:
A. securitized loans, and the rest were backed by the government. B. subprime loans, while 80 percent were still regular prime mortgages. C. individual mortgage loans, and an overwhelming 80 percent had become securitized loans. D. prime loans, and an overwhelming 80 percent had become subprime mortgages.
Trade should be allowed only if the net benefits are positive—that is, the benefits from trade are larger than the costs of trade
a. True b. False Indicate whether the statement is true or false
The largest component of GDP is:
A. government spending. B. consumption expenditures. C. private investment expenditures. D. net exports.