Most people buy salt infrequently and in small quantities. Even a doubling of the price of salt is likely to result in a small decline in the quantity of salt demanded. Therefore
A) the price elasticity of demand for salt is greater than 1 (in absolute value).
B) the demand for salt will be perfectly inelastic.
C) salt is a normal good.
D) the demand for salt is relatively inelastic.
D
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Based on the figure below. Starting from long-run equilibrium at point C, a tax cut that increases aggregate demand from AD to AD1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. D; C B. B; C C. B; A D. D; B
Saving equals ________
A. income minus consumption expenditure minus net taxes B. income minus net taxes C. total income minus total expenditure D. net taxes minus government expenditure
Product-specific services are often ________, but if they create value for the consumer, they ________ the retail demand.
A) inexpensive; increase B) inexpensive; decrease C) costly; decrease D) costly; increase
The production possibilities curve shows that:
a. some of one good must be given up to get more of another good in an economy that is operating efficiently. b. no output combination is impossible. c. an economy that is operating efficiently can have more of one good without giving up some of another good. d. scarcity can be eliminated.