If the price elasticity of demand is computed for two products, and product A measures 0.65, and product B measures 1.3, then
a. product A is more price elastic than product B.
b. product B is more price elastic than product A.
c. consumers are more sensitive to price changes in product A than in product B.
d. product B is more price inelastic than product A.
e. products A and B must be substitutes.
B
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Historically, the United States has experienced
A) no changes in the unemployment rate since World War II. B) periods of both increases and decreases in the unemployment rate since World War II. C) continuous increases in the unemployment rate since World War II. D) continuous decreases in the unemployment rate since World War II.
Full employment occurs when
A) the sum of frictional and structural unemployment is zero. B) the cyclical unemployment rate is zero. C) the structural unemployment rate is zero. D) the unemployment rate is zero. E) the frictional unemployment rate is zero.
In 2011, the U.S. experienced
a. both current account and financial account deficits. b. a deficit in the current account and a surplus in the financial account. c. a surplus in the current account and a deficit in the financial account. d. a surplus in both the current account and the financial account.
If an increase in the price of one good causes the demand curve for another good to shift to the right, then the two goods are:
A. substitutes. B. complements. C. normal. D. unrelated.