The demand curve for a product will be more elastic when:
a) The amount of income spent on the product is small.
b) There are many substitutes.
c) Quantity demanded is unresponsive to a change in price.
d) Consumers have insufficient time to adjust to changes in price.
Answer: b) There are many substitutes.
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In 2010, the poorest 20 percent of families in the United States population earned approximately ____ percent of the before-tax total income. (Fill in the blank.)
a. 1 b. 4 c. 9 d. 12
As more capital per worker is added, the curve of the per-worker production function ______.
a. becomes flatter
b. becomes more curved
c. rises sharply
d. falls sharply
In September of 2007, the Federal Reserve Board Open Market Committee voted to lower interest rates for the first time that year. Explain how lower interest rates affect the aggregate demand curve
What will be an ideal response?
If a U.S. importer can purchase 10,000 British pounds for $20,000, the rate of exchange is:
A. $1 = 2 British pounds in the United States. B. $2 = 1 British pound in the United States. C. $1 = 2 British pounds in Great Britain. D. $.5 = 1 British pound in Great Britain.