If a consumer is relatively insensitive to changes in the price of a good, then the consumer's demand for the good is
A) elastic.
B) unit elastic.
C) inelastic.
D) perfectly elastic.
C
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Suppose that in the future, real GDP per person grows 2 percent a year in the United States and 4 percent a year in China. It will take real GDP per person approximately ________ years to double in the United States and approximately ________ years to double in China.
A) 35; 8.75 B) 35; 17.5 C) 20; 10 D) 50; 25 E) 70; 35
Internal balance describes
A) equilibrium in the goods market. B) a desired level of trade or capital flows. C) where the IS and BP curve intersect. D) a domestic rate of growth consistent with a low unemployment rate.
Which of the following would not limit the extent of a firm's vertical integration?
a. the managers' bounded rationality b. a large minimum efficient scale of producing inputs relative to the firm's input requirements c. the fact that the quality of inputs is easily determined at the time of purchase d. many interchangeable suppliers of the firm's inputs e. high transaction costs of contracting with resource suppliers
Suppose that a family saves and borrows to buffer itself against changes in income. These actions relate to which problem in measuring inequality?
a. in-kind transfers b. negative income tax c. transitory versus permanent income d. economic mobility