Demand is more inelastic for luxury goods.
Answer the following statement true (T) or false (F)
False
When demand is inelastic, consumers are not very responsive to price changes. Necessity goods like medicines have very inelastic demand. Luxury goods have more elastic demand.
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More rigid government regulations and union contracts in Western Europe contribute to greater ________ in Western Europe than in the United States.
A. real GDP per capita. B. unemployment C. wage inequality D. real wage growth
Automatic changes in tax revenues and expenditures that occur as a result of fluctuations in real GDP are referred to as automatic
A) discretionary policy. B) discretionary taxes and expenditure. C) government. D) stabilizers. E) taxes and expenditure.
A necessary condition for exchange rate stability where the sum of the elasticity of import demand and the elasticity of export supply must be greater than one is known as
A) the Marshall Lerner condition. B) the elasticities rule. C) the elasticities approach. D) the exchange rate condition.
A good is nonrivalrous in consumption if
A. its consumption by one person does not reduce its consumption by others. B. its consumption by one person reduces its consumption by others. C. it is possible, or not prohibitively costly, to exclude someone from receiving the benefits of the good once it has been produced. D. it is impossible, or prohibitively costly, to exclude someone from receiving the benefits of the good once it has been produced. E. a and d