As the price of a Giffen good falls, the consumer will
A) purchase more units.
B) purchase fewer units.
C) not change the amount purchased.
D) There is not enough information to answer this question.
B
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In the late 1970s, the inflation rate was over 10 percent per year. Many home mortgage lending institutions had mortgages outstanding that had been made in the 1960s at nominal interest rates of around 5 percent per year
Many of these lending institutions failed. What can explain the high failure rate of lenders in the late 1970s?
In 2002, the United States contained around _____ governmental units at all levels
a. ninety thousand b. twelve thousand c. fifty d. five hundred and thirty-five
Refer to the above table. At a price below $5, the absolute price elasticity of demand is
A) 1.0. B) below 1. C) between 0.8 and 1.0. D) greater than 1.
Which of the following is an assumption used in deriving a production possibilities curve?
A. The wages in an industry increase constantly. B. Poverty always exists in society. C. The amount of resources is fixed. D. Prices will continue to increase.