Assuming price elasticity of demand is reported as an absolute value, a price elasticity of demand greater than one indicates demand:
A. for the good is inelastic.
B. for the good is elastic.
C. for the good is unitary elastic.
D. can not be determined without more information.
Answer: B
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As the central bank, the Federal Reserve System provides banking services to
A) banks and regulates financial institutions and markets. B) foreign corporations and determines the exchange rate. C) the government and the stock market. D) individuals and controls the quantity of money. E) banks and determines how much the U.S. government will borrow.
Which of the following are separate flows in the circular flow model?
A) the flow of income received by households and the flow of tax revenues paid by households B) the flow of income earned from the sale of resources and the flow of expenditures on goods and services. C) the flow of goods and the flow of services D) the flow of costs and the flow of revenue
Why is macroeconomic forecasting so difficult? Does this difficulty mean economics is a worthless field of study?
What will be an ideal response?
In the circular-flow diagram,
a. firms own the factors of production. b. The factors of production are labor, land, and capital. c. The factors of production are also called "output." d. All of the above are correct.