If the price elasticity of demand for a good is less than one in absolute value, economists would characterize consumers of this good
A) as not very sensitive to price.
B) as not very sensitive to the quantity they demand.
C) as very sensitive to price.
D) as elastic.
A
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A decrease in stock prices alters the consumption function by:
A. decreasing disposable income. B. increasing autonomous consumption. C. decreasing autonomous consumption. D. increasing disposable income.
Which of the following is NOT shown explicitly in the circular flow model?
A) the governments' purchases in the goods market B) the taxes the governments collect from households C) the governments' interaction with firms D) the legal system E) the transfers the governments make to households
A stock market
A. guarantees that a seller of a stock will get the price at which the stock was purchased. B. is used only to sell new stock issues from corporations and not to transfer existing stocks. C. is used only to sell stocks, not to buy stocks. D. gives an individual a chance to invest in stocks without committing funds for long periods of time.
A person is considered unemployed if she is
a. working at a part-time job. b. taking a vacation from a job. c. working at a full-time job in a foreign country. d. not working but is actively looking for work.