Demand for a good which comprises a relatively large share of the consumer's budget tends to be

A. perfectly inelastic.
B. elastic.
C. perfectly elastic.
D. inelastic.

Answer: B

Economics

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Exhibit 30-2

?

A. Curve X, because if there is a positive externality, negative external benefits are associated with it: social costs external benefits - private benefits, therefore the marginal social benefit curve must lie below the marginal private benefit curve. B. Curve X, because if there is a positive externality, external benefits are associated with it: social benefits = external benefits + private benefits, therefore the marginal social benefit curve must lie below the marginal private benefit curve. C. Curve Y, because if there is a positive externality, external costs are associated with it: social benefits = external costs + private benefits, therefore the marginal social benefit curve must lie above the marginal private benefit cost curve. D. Curve Y, because if there is a positive externality, external benefits are associated with it: social benefits = external benefits + private benefits, therefore the marginal social benefit curve must lie above the marginal private benefit curve.

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Stock markets deal

a. almost exclusively in newly issued stocks. b. in previously issued stocks. c. in both newly issued and previously issued stocks, but they do not deal in bonds. d. in large amounts of both newly issued and previously issued stocks and bonds.

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When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:

A. output, causing it to definitely decrease. B. prices, causing them to definitely rise. C. output, causing it to definitely increase. D. prices, causing them to definitely fall.

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Portfolio investment and foreign direct investment are methods through which

A. ownership in assets are acquired in countries other than one's home country. B. U.S. residents invest funds in companies that export goods. C. short-term investments are converted to long-term ones. D. U.S. residents invest funds in companies that import goods.

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