Other things equal, the demand for a good tends to be more inelastic, the
a. fewer the available substitutes.
b. longer the time period considered.
c. more the good is considered a luxury good.
d. more narrowly defined is the market for the good.
a
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Constructing the CPI involves which of the following stages?
i. conducting the monthly price survey ii. converting the CPI to an international index iii. selecting CPI market basket A) i and iii B) iii only C) ii only D) i only E) i, ii, and iii
Refer to Figure 8.2. Holding other variables constant, a decrease in households' wealth will result in a
A) movement from point A to point B. B) movement from point B to point A. C) shift from curve S1 to curve S2. D) shift from curve S2 to curve S1.
Money is each of the following except
A) a medium of exchange. B) a store of value. C) a means by which the central bank can always, and permanently, affect production. D) a unit of account.
You borrow $10,000 at an interest rate of 5% to open Movies Galore, a DVD rental store. You will earn an economic loss if
A. the return on your investment is less than 5%. B. the return on your investment is exactly 5%. C. the return on your investment is greater than 5%. D. indeterminate from given information.