When would demand for a good be more inelastic?
a) when there are fewer available substitutes
b) when the time period is considered longer
c) when the good is considered more of a luxury good
d) when the market is more narrowly defined
Ans: a) when there are fewer available substitutes
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The market implications of taste-based discrimination were in part developed by:
A) Gary Becker. B) Amartya Sen. C) Simon Kuznets. D) Paul Samuelson.
The dollar is regarded as the "safe haven" currency; investors flock to it when they are worried about the outlook for the global economy
Fears were at their greatest in late 2008 and early 2009 after the collapse of the Lehman Brothers investment bank in September 2008. As investors flocked to the dollar A) the demand for dollars increased and the exchange rate increased. B) the demand for dollars decreased and the exchange rate decreased. C) the supply of dollars increased and the exchange rate decreased. D) the supply of dollars decreased and the exchange rate increased.
If the interest rate is above the equilibrium interest rate, then
A) there is an excess demand for money. B) the quantity of money demanded exceeds the quantity supplied. C) people will sell bonds and the interest rate will fall. D) people will buy bonds and the interest rate will fall.
Many small governments provide more utility to individuals than one large government in most cases because _____
a. individuals have heterogeneous preferences and can move to an area that suits their taste for government b. individuals have homogeneous preferences and can move to an area that suits their taste for government c. the optimal sharing group for nearly all public goods is the local level d. individuals generally have a preference for local government