Suppose income falls 5 percent in a year, and as a result, housing construction falls from 10 million to 5 million units annually. Based on this information, housing starts are
A. Price-inelastic.
B. Price-elastic.
C. A normal good.
D. An inferior good.
Answer: C
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If price of product A increases by 10%, and the quantity demanded for product B drops by 50%, then these two products are
A) substitutes. B) complements. C) normal goods. D) inferior goods.
In 2015, exports represented:
A. about 13 percent of U.S. GDP. B. about 1 percent of U.S. GDP. C. about 30 percent of U.S. GDP. D. nearly 20 percent of U.S. GDP.
According to the Environmental Protection Agency, the total costs created by the Clean Air Act between 1970 and 1990 were about $500 billion. Their midrange estimate of the value of benefits from the Clean Air Act for the same time period was about:
a. half that amount. b. two-thirds of that amount. c. more than 40 times higher. d. almost 10 times higher.
Using only marginal revenue and marginal cost, we can determine whether a firm is incurring a profit or a loss
a. True b. False Indicate whether the statement is true or false