The larger the proportion of income spent on a product, other things equal, the:
a. more unit elastic is a consumer's demand
b. more elastic is a consumer's demand.
c. more inelastic is a consumer's demand.
d. more vertical is a consumer's demand curve.
b
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A currency revaluation is a(n):
A. increase in the value of a currency relative to other currencies. B. increase in the official value of a currency in a fixed-exchange-rate system. C. decrease in the value of a currency relative to other currencies. D. reduction in the official value of a currency in a fixed-exchange-rate system.
What is the crowding-out effect and how does it work?
What will be an ideal response?
If a tax is economical,
a. its cost of collection is small relative to the revenue collected. b. it has an economic impact on households. c. it creates no economic distortions. d. its revenues are used to finance productive investments.
In Western nations, the desire for the incredible fruits of the materialist world may often
a. lead to very low opportunity costs of foreign aid b. lead to low birth rates and high death rates c. lead to an abandonment of the LDCs d. come at the expense of tradition e. lead to very high opportunity costs of innovation