Refer to the diagram. In the P 3 P 4 price range, demand is:
A. of unit elasticity.
B. relatively inelastic.
C. relatively elastic.
D. perfectly elastic.
B. relatively inelastic.
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Arguments in support of protectionism (and against free trade) include all of the following EXCEPT
A) new and troubled industries need to be protected until they acquire sufficient strength to compete equally against their foreign counterparts. B) jobs at home should be protected from cheap foreign labor. C) protectionism increase total domestic consumption possibilities. D) national security interests require that nations retain the ability to produce vital materials at home and avoid dependence upon potential enemies.
The name given to the fraction of deposits that a bank is legally required to hold in its vault, or as deposits at the Fed, is __________.
A. Assets B. Assets + a bank's liabilities C. Capital D. Required reserves
If capital and labor are perfect substitutes in a production function, the isoquants for this function will be
A. convex from above. B. concave from above. C. a straight line. D. any one of these depending on the particular combination of labor and capital employed.
If the absolute price elasticity of demand for a product is greater than 1, then
A. the absolute price elasticity of demand is inelastic and consumers are relatively sensitive to price changes. B. the absolute price elasticity of demand is inelastic and consumers are relatively insensitive to price changes. C. the absolute price elasticity of demand is elastic and consumers are relatively insensitive to price changes. D. the absolute price elasticity of demand is elastic and consumers are relatively sensitive to price changes.