If the absolute price elasticity of demand for a product is less than 1, then
A) the absolute price elasticity of demand is inelastic and consumers are relatively insensitive to price changes.
B) the absolute price elasticity of demand is inelastic and consumers are relatively sensitive to price changes.
C) the absolute price elasticity of demand is elastic and consumers are relatively insensitive to price changes.
D) the absolute price elasticity of demand is elastic and consumers are relatively sensitive to price changes.
A
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The socialist countries of Eastern Europe have
A. fewer environmental problems than capitalist countries. B. improved their environment more than the capitalist countries. C. worse environmental problems than capitalist countries. D. worsened since the collapse of communism there.
The slope of the production possibilities frontier is defined to be the marginal rate of
A) transformation. B) technical substitution. C) substitution. D) profit.
Other things constant, a decrease in consumer income will do which of the following?
a. Cause a movement along the demand curve for large-screen television sets, but it will not shift the demand curve. b. Decrease the demand for large-screen television sets. c. Increase the demand for large-screen television sets. d. Have no impact on the quantity demanded or the demand curve for large-screen television sets.
Which of the following is NOT mentioned as a difficulty the Fed faces when trying to affect aggregate demand in the short run?
A. Lack of direct control B. Lagged results C. Sticky wages and prices D. Incomplete data