When a good has a unitary price elasticity, consumer expenditures for the good
A) change in the same direction as a price change.
B) change in the opposite direction to a price change, but not necessarily by the same percentage as the price change.
C) do not change when the price of the good decreases.
D) change in the opposite direction and by the same percentage as any price change.
C
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A demand curve shows the relationship between price and quantity demanded only so long as all other things are held constant.
Answer the following statement true (T) or false (F)
If the income elasticity for Ramen Noodles is -3.0, we may conclude that Ramen Noodles are __________.
A. a normal good B. a inferior good C. both a normal good and an inferior good D. neither a normal good nor an inferior good
The following table provides data for an economy in a certain year.Consumption expenditures50Imports40Government purchases of goods and services20Construction of new homes and apartments30Sales of existing homes and apartments40Exports50Government payments to retirees10Household purchases of durable goods20Beginning-of-year inventory10End-of-year inventory20Business fixed investment30Given the data in the table, compute the value of GDP.
A. 160 B. 140 C. 130 D. 150
With microfinance, the mechanism of ________ is a way to avoid the problem of imperfect information.
A. peer lending B. requiring no collateral C. making only small loans D. accepting savings deposits