Ice cream can be frozen. In the short run the magnitude of the own price elasticity of demand for ice cream:
A) is higher than in the long run.
B) is lower than in the short run.
C) is the same as in the long run.
D) does not depend on the fact that ice cream can be frozen.
A
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Hong Kong is an example of an economy that
A) does not experience economic growth because it is not a democracy. B) experiences economic growth in spite of the fact that is lacks democratic freedom. C) grows more slowly than other Asian countries because property rights are not valued. D) needs to promote investment so that economic growth can occur. E) lacks economic freedom and therefore experiences the slowest economic growth of all developed economies.
In the long run, changing technology on average has led to: a. lower employment and lower wage rates
b. higher employment and lower wage rates. c. lower employment with wage rates unchanged. d. higher employment with wage rates unchanged. e. higher incomes and more leisure time.
Suppose that Venezuela experiences significant capital outflows after a recent election. If the nation had fixed exchange rates, what effect would these flows have had on Venezuela's overall balance and reserves account?
a. Overall balance would rise and reserves account would fall. b. Overall balance would not change and reserves account would fall. c. Overall balance would fall and reserves account would rise. d. Overall balance would fall and reserves account would fall. e. Overall balance would fall and reserves account would rise.
When a particular product has numerous but imperfect substitutes, the demand for that product will tend to be
A. perfectly elastic. B. inelastic. C. unitary. D. elastic.