Since an individual spends a small share of her income on salt, the elasticity of demand is likely to be low
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 2-13. If the two countries have the same amount of resources and the same technological knowledge, which country has an absolute advantage in the production of both pineapples and coconuts?
A) neither country B) Costa Rica C) Guatemala D) cannot be determined
The term "sovereign debt crisis" applies when ________
A) private businesses cannot borrow money because the government is borrowing so much B) nations compete fiercely with each other to increase their borrowing C) a government finds that the cost of borrowing is higher than it had anticipated D) the debt of a particular government quickly loses value
When the price level rises from 110 to 115, the aggregate level of GDP supplied rises from $80 billion to $120 billion
This ________ relationship represents the ________ relationship between the quantity of real GDP firms are willing to supply and the price level. A) positive; short-run B) negative; short-run C) positive; long-run D) negative; long-run
Nominal income is equal to real income if the CPI is less than 100
Indicate whether the statement is true or false