A good will have a more elastic demand, the
a. greater the availability of close substitutes.
b. more broad the definition of the market.
c. shorter the period of time.
d. more it is regarded as a necessity.
a
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The responsiveness of the quantity demanded of one good to a change in the price of a different good is measured by the:
A. cross-price elasticity of demand. B. income elasticity of demand. C. price elasticity of supply. D. price elasticity of demand.
Consider an economy over the years 2008 and 2009. The output in the economy has remained constant over the two years but the prices of all goods and services have halved. In such a situation,
A) the real GDP of the economy stays the same over the two years. B) the nominal GDP of the economy remains the same over the two years. C) the real GDP of the economy increases over the two years. D) the nominal GDP of the economy increases over the two years.
In April 2010, the U.S. economy added 290,000 jobs but the unemployment rate still increased from 9.7 percent to 9.9 percent. Which of the following best explains this situation? a. The size of the labor force shrunk
b. The number of unemployed workers also increased, but by a smaller percentage. c. The number of illegal immigrants increased substantially. d. The number of discouraged workers increased substantially. e. The number of unemployed workers also increased, but by an even greater percentage.
Suppose you recently took a pay cut of 2% at your job. You expect the price level to fall by 3% during this year. What would be the impact on your real wage?
a. The real wage would fall by 3% b. The real wage would rise by 3% c. The real wage would fall by 1% d. The real wage would rise by 1% e. The real wage would be unchanged