If the price elasticity of demand for a good is .75, the demand for the good can be described as:
A. inelastic.
B. normal.
C. elastic.
D. inferior.
Answer: A
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Explain some of the steps that a government would wish to adopt in an inflationary environment
When politicians support policies that benefit small interest groups, such as farmers, at the expense of unorganized, widely dispersed groups, for example, taxpayers or consumers, this is a reflection of the
a. tragedy of interest. b. special-interest effect. c. unorganized interest effect. d. shortsightedness effect.
Which of the following is the best example of "creative destruction"?
a. The imprudent use of a credit card by a family that already has a high level of debt. b. The virtual elimination of the film camera by the digital camera. c. The failure of a business because of poor management. d. The failure of a business because of higher cost resulting from government regulation.
Production quota
What will be an ideal response?