The price of wheat has fallen since 1950. Which of the following explains this price decline?
A) The price elasticity of demand is less than 1 (in absolute value) and wheat is an inferior good.
B) The price elasticity of demand is greater than 1 (in absolute value) and the income elasticity of demand for wheat is greater than 1.
C) The price elasticity of demand is greater than 1 (in absolute value) and the income elasticity of demand for wheat is low.
D) The price elasticity of demand is less than 1 (in absolute value) and the income elasticity of demand for wheat is low.
D
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
If a tariff is placed on watches, the price of both domestic and imported watches will rise by the amount of the tariff
a. True b. False Indicate whether the statement is true or false
What is an entitlement?
What will be an ideal response?
Creative destruction refers to
A. the destruction of the government system which limits economic growth. B. the movement from an agricultural society to a service economy. C. the creation of new jobs and economic growth after destroying old jobs. D. the mechanism for establishing property rights.