When there are more substitutes for a product, the ________ for the product is ________.
A. income elasticity; greater
B. demand; more price elastic
C. demand; less price elastic
D. income elasticity; smaller
Answer: B
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East Asian economies have grown
A) rapidly because of high saving rates. B) rapidly despite a lack of property rights. C) slowly because of a lack of property rights. D) slowly because of low saving rates. E) rapidly because they virtually eliminated international trade.
In a two-good, two country world, if one country has an absolute advantage in the production of both goods, it can still benefit by trading with the other country
Indicate whether the statement is true or false
Refer to Figures b and c. In the figures above, the probability of sunny weather, state S, is higher in:
A. Figure b.
B. Figure c.
C. bundle C versus A in both figures.
D. bundle A versus C in both figures.
During the recession witnessed in early 2001, many firms laid off their employees and downsized. The reason for this decrease in the demand for employees was:
a. a reduction in the demand for final goods. b. a reduction in the prices of final goods. c. an increase in the demand for final goods. d. an increase in the prices of final goods. e. the incompetency and poor performance of the employees.