Which of the following would result in a higher absolute value of the price elasticity of demand for a product?
A) A wide variety of substitutes are available for the good.
B) The time period under consideration is short.
C) The good is a necessity.
D) The expenditure on the good is small relative to one's budget.
Answer: A
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
Refer to Figure 7-2. The market equilibrium quantity is ________ thousand vaccinations
A) 200 B) 400 C) 600 D) > 600
Price controls
A) do not include black markets. B) are another name for the price system. C) do not include rent controls. D) interfere with the rationing function of prices.
The market value of a bond on any given day is also known as its par value.
Answer the following statement true (T) or false (F)