If one's demand for peanut butter decreases as income rises, the income elasticity of demand for the product is
A) elastic.
B) inelastic.
C) unit elastic.
D) negative.
D
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The Bretton Woods exchange rate system was a
A) fixed exchange rate system. B) floating exchange rate system. C) flexible exchange rate system. D) managed float exchange rate system.
When the price of ulcer medication increased by $20 per 100 tablets, a drug company's revenue increased by $10 million. Its elasticity of demand coefficient (in absolute terms) must be: a. zero
b. greater than one. c. less than one. d. infinitely large.
Cyclical unemployment
a. is short-term joblessness experienced by those who are between jobs b. is joblessness created by a mismatch between available jobs and workers' skills c. is joblessness related to regular seasonal events such as holidays or weather changes d. is joblessness caused entirely by microeconomic forces e. does not exist when the economy is at full employment
Some nations try to nurture and encourage new firms with lots of promise, so they protect them from foreign competition. This is called the _________ argument for trade protection.
a. home nation unemployment b. level playing field c. efficiency d. infant industry