If the price elasticity of demand for a good is greater than one in absolute terms, we say that demand is
A) elastic.
B) inelastic.
C) perfect.
D) vertical.
A
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Moral hazard typically occurs because
A) people are dishonest. B) agreements sometimes create incentives that are costly to monitor. C) workers possess diminishing marginal productivity. D) workers possess adverse selection.
Anger over British taxes played a significant role in bringing about the
a. election of John Adams as the second American president. b. American Revolution. c. War of 1812. d. "no new taxes" clause in the U.S. Constitution.
One economic truism is that any nation's restriction of imports will ultimately lead to
A) an increase in exports. B) a reduction in exports. C) an economic upswing. D) an increase in GDP.
GDP measures
A. the annual value of final goods and services produced by factors of production located within a national border. B. the value of all goods and services sold in a given country. C. the annual total value of all services produced by factors of production located within a national border. D. the annual value of goods and services produced by factors of production owned by companies headquartered in a given country.