If a 10 percent price increase generates a 10 percent decrease in quantity demanded, then demand is
A) unit elastic.
B) elastic.
C) perfectly inelastic.
D) perfectly elastic.
E) inelastic.
A
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A sudden increase in immigration would be considered a(n):
A. short-run supply shock. B. long-run supply shock. C. interest-rate shock. D. A change in immigration would not affect any of these.
The theory of liquidity preference is largely at odds with the basic ideas of supply and demand
a. True
b. False
Indicate whether the statement is true or false
The economic functions of government differ from the political functions of government in that
A) the economic functions are carried out by the federal government, while the political functions are carried out by state and local governments. B) the economic functions include policies that affect income redistribution, while the political functions involve things that affect the way exchange is carried out. C) the economic functions involve things that affect the way exchange is carried out while the political functions include policies that affect income redistribution. D) the economic functions are carried out by state and local governments, while the political functions are carried out by the federal government.
Although popular opinion frequently portrays trade deficits (actually, account deficits) as "bad," can you present economic reasons why a trade deficit might be considered "good"?