When the elasticity of demand for a particular good is between zero and -1, _____
a. demand is elastic
b. demand is inelastic
c. demand is unit-elastic
d. the good is an inferior good
e. the good is a normal good
b
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An economist who claims that an increase in government spending would result mainly in a higher price level believes the economy is operating where
a. the MPC is small. b. the MPC is large. c. aggregate supply curve is flat. d. aggregate supply curve is steep.
Which of the following statements is true about the effects of illegal immigration in the United States?
A. Illegal immigrant workers displace domestic-born workers on a one-for-one basis. B. Illegal immigration has a negative fiscal impact that falls most heavily on state and local governments. C. Illegal immigration negatively impacts wages and the standard of living for all domestic- born workers. D. All of these are true.
American critics of the WTO argue that free international trade and investment will:
A. reduce U.S. imports. B. reduce employment in developing nations. C. undermine environmental and labor protections in the United States. D. increase immigration from low-income to high-income nations.
Pollution is an example of a
A. positive externality. B. neutral externality. C. negative externality. D. golden externality.