If a small percentage increase in the price of a good results in a rather large percentage reduction in the quantity demanded of the good, demand is said to be
a. vertical.
b. relatively inelastic.
c. relatively elastic.
d. robust.
C
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Suppose the growth rate of GDP in the United States is 4.2 percent. If 1.1 percent and 1.4 percent of GDP growth are due, respectively, to capital and labor growth, the amount resulting from technological progress is
A) 0.3 percent. B) 1.1 percent. C) 1.4 percent. D) 1.7 percent.
If a tax is levied on the buyers of a product, then the demand curve will
a. not shift. b. shift down. c. shift up. d. become flatter.
When the price of oil declines significantly, the price of gasoline also declines. The latter occurs because of a(n):
A. increase in the demand for gasoline. B. decrease in the demand for gasoline. C. increase in the supply of gasoline. D. decrease in the supply of gasoline.
Market failures include all of the following EXCEPT
A) buyers pay for all the costs involved in the production of goods and services. B) public goods. C) positive externalities. D) negative externalities.