A lower price elasticity of demand coefficient occurs when:
a. many substitutes exist.
b. the quantity demanded is more responsive.
c. few substitutes exist.
d. the market is broadly defined.
c
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Suppose Stan transfers $1,000 from his checking account into a savings account. What are the effects on M1 and M2 money supply?
A) M1 increases; M2 decreases. B) M1 decreases; M2 remains the same. C) Both M1 and M2 increase. D) Both M1 and M2 decrease. E) Both M1 and M2 remain the same.
Which of the following is a normative statement about economic growth?
A) Economic growth hurts developing countries. B) Economic growth increases GDP per capita. C) Foreign direct investment stimulates economic growth. D) Economic growth is associated with higher labor productivity growth.
Which statement is true?
A. Scarcity is simply a lack of money. B. The United States' society has been so affluent in the last 50 years that scarcity is only a minor problem. C. The economic problem refers to the problem of poverty. D. If scarcity did not exist there would be no need to economize.
A market is NOT contestable if:
A. existing firms cannot respond quickly to entry by lowering their price. B. there are sunk costs. C. consumers respond quickly to a price change. D. all producers have access to the same technology.