Price elasticity is defined as the change in quantity demanded relative to a change in
A. the price of substitute products.
B. the price of the product.
C. the price of complementary products.
D. consumer income.
Answer: B
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Maximum employment and moderate long-term interest rates are best achieved with
A) price stability. B) high and variable inflation rates. C) high real interest rates. D) high and stable inflation rates. E) high short-term interest rates.
A "buy one, get one for half price" promotion is an example of
A) price discriminating among units of a good. B) price discriminating among groups of buyers. C) a legal monopoly. D) a natural monopoly. E) marketing by a perfectly competitive firm designed to increase the firm's sales.
Which of the following would be considered a negative real supply shock?
A) a relaxation of government environmental regulations B) a permanent increase in the price of energy C) a decrease in the money supply D) a decrease in aggregate demand
Social Security transfers wealth from younger generations to older generations
a. True b. False Indicate whether the statement is true or false