The textbook tells us that in the short run, people typically ___________ price changes when compared to the long run
a. are very responsive to
b. are more sensitive to
c. are less sensitive to
d. do not respond to
e. are unaware of
C
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A tax is regressive if it
A. is levied on consumers. B. takes a smaller percentage of income as income increases. C. takes a higher percentage of income as income increases. D. takes the same percentage of income regardless of income level.
Evidence suggests that financial deepening is of greatest benefit to ________
A) industries that are highly dependent on external sources of funds B) family-owned enterprises C) established firms, rather than new firms D) child workers
John's utility from an additional dollar increases more when he has $1,000 than when he has $10,000. From this, we can conclude that John
A) is risk averse. B) is risk loving. C) is risk neutral. D) has a negative marginal utility of wealth.
If the absolute value of the price elasticity of demand for a product is 2, and the price of a product increased 10 percent, then the quantity demanded will decline by
A. 2 percent. B. 5 percent. C. 10 percent. D. 20 percent.