The responsiveness of quantity demanded of a good to changes in its price is the
A. cross elasticity of demand.
B. price elasticity of demand.
C. quantity elasticity of price.
D. income elasticity.
Answer: B
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The income security program category for federal government outlays includes spending for:
a. Social Security. b. Medicare. c. Welfare. d. Unemployment compensation. e. All of these.
The exemption of municipal bond interest income from federal personal income taxes
A. generally benefits the wealthy most. B. does not help municipal governments lower financing costs because it is offset by shifting increasing municipal bond rates. C. does not help municipal governments lower financing costs because it is offset by shifting falling municipal bond rates. D. is an indirect tax on the underlying municipal bonds that generate the interest income.
Purposeful behavior means that:
A. people are selfish in their decision making.
B. people weigh costs and benefits to make decisions.
C. people are immune from emotions affecting their decisions.
D. decision makers do not make mistakes when weighing costs and benefits.
Recall the Application about the policies used by the European Union to support the agricultural sectors of is member countries to answer the following question(s). According to this Application, in recent years the European Union has reformed its agriculture policies by reducing or eliminating minimum prices. Ceteris paribus, these policy reforms would ________ excess supply by ________ prices.
A. reduce; raising B. reduce; lowering C. increase; raising D. increase; lowering