Ceteris paribus, as the price of a good or service increases
A) people will buy more of it.
B) people will buy less of it.
C) people will want less of it.
D) people will want more of it.
Answer: B
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The growth of GDP may understate changes in the economy's economic well-being over time if the ________.
A. amount of leisure decreases B. quality of products and services improves C. environment deteriorates because of pollution D. distribution of income becomes increasingly unequal
The "Great Moderation" refers to ________
A) sharp declines in asset prices B) the long economic expansion of the 1960s C) the mild economic recoveries of the 1970s and early 1980s D) the "oil tax" of the 1970s E) none of the above
In perfect competition, there are differences in the products sold by various firms.
Answer the following statement true (T) or false (F)
The cross-price elasticity of demand measures
a. how the quantity demanded of one good changes along with income b. the slope of the demand curve c. the slope of the supply curve at the point of equilibrium d. the responsiveness of the quantity demanded of one good to changes in the price of another good e. how responsive changes in price are to changes in quantity demanded