A 10 percent rise in the price of housing reduces the quantity demanded of housing by 3 percent. We can conclude that the demand for housing is:
A. inelastic.
B. elastic.
C. unitary elastic.
D. perfectly elastic.
Answer: A
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In the Airline Pricing Strategies case discussed in the text, a product with fewer rules and restrictions can command a higher price
Indicate whether the statement is true or false
Real GDP is the product of the
a. total hours of work times the labor force. b. labor force times the output per hour. c. nation's capital stock times the output per hour. d. total hours of work times the output per hour.
All of the following describes Nazi Germany's economic system, except that
A. the ownership of land, labor and capital was in private hands. B. it was highly nationalistic with much of its production directed toward military goods and services. C. the government dictated what was to be produced. D. a major goal was to redistribute income from the wealthy and the middle class to the poor.
Why do we seldom see people asking to have their own wages reduced?
a. People are usually narrow-minded. b. People usually overestimate themselves. c. People usually look out for their own self-interest. d. People are usually selfish.