The ________ the proportion of one's budget spent on a good, the ________ the elasticity of demand
A) greater; lower
B) greater; greater
C) lower; greater
D) lower; more responsive
B
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Suppose that real GDP grows at 3 percent per year. What is the growth rate of real GDP per person if the population grows at:
a. 2 percent? What happens to the standard of living? b. 3 percent? What happens to the standard of living? c. 4 percent? What happens to the standard of living?
Refer to Figure 5-1. At the market equilibrium,
A) the marginal cost is less than the marginal benefit. B) the marginal cost is equal to the marginal benefit. C) the marginal cost is greater than the marginal benefit. D) the marginal cost is zero.
If a country has a flexible exchange rate, will high rates of inflation, though generally harmful, price this country's goods off world markets? Explain.
What will be an ideal response?
Suppose option A has a higher standard deviation than option B. Which of the following statements is, in general, true?
A. A risk-averse person prefers option A to option B. B. A risk-neutral person is indifferent between options A and B. C. A risk-averse person prefers option B to option A. D. Insufficient information to determine.