Relative Importance
What will be an ideal response?
A second factor in determining a good's elasticity of demand is how much of your budget you spend on the good.
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Refer to Table 3-2. The table above shows the demand schedules for cashews of two individuals (Jordy and Amy) and the rest of the market. If the price of cashews falls from $4 to $2, the market quantity demanded would
A) increase by 28 lbs. B) decrease by 36 lbs. C) decrease by 28 lbs. D) increase by 36 lbs.
In the United States, interest payments on the federal debt were about ________ of total federal expenditures in 2011, and therefore large tax increases or significant cutbacks in other types of federal spending are generally considered ________ for
the government to be able to continue making the interest payments. A) 55%; necessary B) 28%; unnecessary C) 28%; necessary D) 6%; unnecessary
Economists object to monopolies on the grounds that monopolies:
a. can fix prices at levels that are too high. b. lack productive efficiency. c. lack allocative efficiency. d. can only exist hypothetically.
1 A business cycle is:
a. the period of time in which there are three phases which are: peak, depression, and expansion. b. the period of time in which expansion and contraction of economic activity are equal. c. the period of time in which a business is established and ceases operations. d. the recurring growth and decline in real GDP.