When elasticity is 0.1, demand is
A. elastic.
B. inelastic.
C. unit elastic.
D. undefined.
B. inelastic.
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Use the following table with data for a private closed economy (an economy with only a private sector and no international trade) to answer the next question. All figures are in billions of dollars.Expected Rate of ReturnInvestmentConsumptionGDP10%$0$400$4008100500600620060080043007001,00024008001,20005009001,400If the real rate of interest is 2%, then the equilibrium level of real GDP will be
A. $800 billion. B. $1,200 billion. C. $1,400 billion. D. $1,000 billion.
In perfectly competitive industries with identical firms, consumers always end up paying the entire burden of a per-unit tax on output in the long run.
Answer the following statement true (T) or false (F)
Import restrictions create an incentive to smuggle.
Answer the following statement true (T) or false (F)
Publicly provided health insurance for the poor will
A. lower the price of health care to the non-poor and decrease the total amount of health care consumed. B. raise the level of health care consumed by the poor. C. lower the price of health care to the non-poor. D. decrease the total amount of health care consumed.