The income elasticity of demand for caviar tends to be
a. high because caviar is relatively expensive.
b. low because caviar is packaged in small containers.
c. high because buyers generally feel that they can do without it.
d. low because it is almost always in short supply.
c
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The basic organizing framework for both microeconomic and macroeconomic models is
A. purely competitive markets. B. government planning of the economy. C. demand and supply. D. democratic socialism. E. All of these responses are correct.
Unlike either the United States or the United Kingdom, ________ did not occur in China's economy between 2007 and 2009
A) a massive monetary and fiscal stimulus B) a negative demand shock C) a negative rate of inflation (i.e., deflation) D) a sharp increase in financial frictions E) a positive supply shock
Which of the following would likely result as a consequence of rent controls?
A) a reduction in the rate of construction of rental housing units B) unimproved buildings and apartment complexes C) limits on tenant mobility D) All of the above are correct.
A tax on buyers shifts the demand curve to the right
a. True b. False Indicate whether the statement is true or false