The longer any price change persists, the
A) more difficult it is to alter quantity demanded.
B) greater is the price elasticity of demand.
C) lower is the price elasticity of demand.
D) more likely price will return to its original level.
Answer: B
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What does it mean when one currency is "pegged" against another currency?
What will be an ideal response?
Deficit financing
A) is when the government adjusts taxes to raise money to pay for government projects. B) is the mechanism behind the Laffer curve. C) is how the automatic stabilizers work. D) is when discretionary fiscal policy leads to spending more than is collected in taxes.
If the price of airline tickets falls, what will happen to the demand curve for flight attendants?
a. It will shift to the right. b. It will shift to the left. c. The direction of the shift is ambiguous. d. It will remain unchanged.
Investments in both physical and human capital enhance economic growth because they:
A. increases consumption during the current period. B. makes it possible for individuals to produce more goods and services per hour worked. C. encourages firms to expand output by employing more low-productivity workers. D. encourages workers to unionize and, thereby, fight for higher wages.