Since demand is more inelastic for products that represent a smaller share of your income, which one of the following is true?
a. the demand for shoe laces is more elastic than the demand for shoes
b. The demand for oil changes is more inelastic than the demand for cars
c. the demand for ear buds is more elastic than the demand for ipods
d. the demand for Salt has a more elastic than the demand than meat
b
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The three categories of federal government expenditures, in addition to government purchases, are
A) interest on the national debt, defense spending, and transfer payments. B) defense spending, Social Security, and Medicare. C) defense spending, budgets of federal agencies, and transfer payments. D) interest on the national debt, grants to state and local governments, and transfer payments.
Which of the following is the best example of an action that imposes an external cost?
a. Wear and tear on your car as the result of frequent use. b. Deterioration in the average quality of a house you own as the result of poor maintenance. c. Water pollution from an upstream factory that increases the cost of providing clean water to downstream residents. d. A rose garden on your property from which your neighbor gets much enjoyment.
The most dramatic and rapid increases and decreases in exchange rates occur in the
a. very short run b. short run c. long run d. very long run e. triangular arbitrage market
A plot of points representing the rate of inflation and the unemployment for the United States since 1953 reveals that
A. there is an inverse relationship between the two variables. B. there is a positive relationship between the two variables. C. there does not appear to be any trade-off between the two variables. D. none of these.