How much the demand for one good changes in response to a change in the price of a different good is measured by:
A. price elasticity of supply.
B. price elasticity of demand.
C. income elasticity.
D. cross-price elasticity.
D. cross-price elasticity.
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Economists define investment as the purchase of
A) a new physical asset such as a new machine or a new house. B) any physical asset, whether new or not, used by business to increase production. C) any physical asset used by business to increase production and the repurchase of common stock. D) business spending on capital and household spending on durable goods.
Free riding:
A. cannot occur if strategizing takes place. B. is reflected by a downward-sloping best response function. C. is reflected by an upward-sloping best response function. D. is no player's best response.
The expenditure method dictates that GDP is equal to C + I + G + (X M)
a. True b. False Indicate whether the statement is true or false
A merit good is
A. A good society holds to a higher standard in tax regulations. B. Income payments for which no goods or services are exchanged. C. A good or service that society believes everyone is entitled to a minimal quantity of. D. A product that serves as an incentive to produce more output.