If the percentage change in the quantity demanded of a good is greater than the percentage change in price, price elasticity of demand is:
A. elastic.
B. inelastic.
C. perfectly inelastic.
D. perfectly elastic.
Answer: A
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The directive of prompt corrective action means that
A) the FDIC will intervene earlier and more vigorously when a bank gets into trouble. B) the banks must take actions quickly to resolve reserve disputes. C) bank failures cannot occur. D) there must be an immediate response to an increase in interest rates.
A discouraged worker might ________
A) be counted as unemployed B) have tried to find a job during the month prior to the household survey, but without success C) have been prevented from working during the week prior to the household survey, due to illness or other temporary circumstances D) be waiting to return to a job from which he or she has been laid off E) none of the above
Retained earnings are
A. profits not given out to stockholders. B. the funds used to pay corporate taxes. C. the funds held back to pay out dividends. D. the reason there is double taxation.
Consumption will generally decrease when the income tax rate ________ or transfer payments ________.
A. increases; increase B. increases; decrease C. decreases; increase D. decreases; decrease