If the percentage change in the quantity demanded of a good is greater than the percentage change in price, price elasticity of demand is:
a. elastic.
b. inelastic.
c. perfectly inelastic.
d. perfectly elastic.
a
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A marginal propensity to consume of 0.84 results in a multiplier of
A) 6.25. B) 1.19. C) 0.16. D) 0.84. E) 1.84.
For some racquet sports, there have been increases in the size of the racquets; also, the methods and materials used for making racquets have improved. To which problem in the construction of the CPI is this situation most relevant?
a. substitution bias b. introduction of new goods c. unmeasured quality change d. income bias
The idea that firms and resource suppliers in seeking to further their own self-interests in a competitive market economy also simultaneously promotes the public or social interest is a description of:
a. The "invisible hand" b. The guiding function of prices c. "Dollar votes" d. Capital accumulation
Choose the letter of the diagram in Figure 3.1 that best describes the type of shift that would occur in each situation for the market listed on the left, ceteris paribus. Figure 3.1 Shifts of Supply and Demand Designer clothes: consumer confidence in the economy improves.
A. A. B. B. C. C. D. D.