A 10 percent rise in the price of housing reduces the quantity demanded of housing by 3 percent. We can conclude that the demand for housing is:
a. inelastic.
b. elastic.
c. unitary elastic.
d. perfectly elastic.
a
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Since 2008, the Fed has conducted a policy that involves direct lending to private firms. Those actions of the Fed are called
A) open market operations. B) quantitative easing. C) federal funds rate targeting. D) credit policies.
Which of the following is true regarding this statement? "The president's decision to spend more money on national defense is smart."
A) This is a normative statement. B) The federal government does not face scarcity. C) This topic would be studied in microeconomics. D) Social interest must always be more important than self-interest. E) Ceteris paribus does not apply to the government.
Property rights assure people that
A) the government will not confiscate their income or savings. B) the government will provide a minimum standard of living. C) the factors of production and goods are owned jointly by the government and the people. D) economic growth will enhance government involvement in the economy. E) international trade will be limited.
Using the table provided above, what can be concluded about the Gini ratio and what does this mean for income equality?
A) The Gini ratio is increasing which means there is greater income inequality. B) The Gini ratio is increasing which means there is greater income equality. C) The Gini ratio is decreasing which means there is greater income equality. D) The Gini ratio is decreasing which means there is greater income inequality.