The demand for a good is more price inelastic if
A) its price is higher.
B) the percentage of income spent on it is larger.
C) it is a luxury good.
D) it has no close substitutes.
D
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Consider two countries—country A and country B. Both countries are exactly similar in all aspects except for one. The institutions in country A are inclusive while the institutions in country B are extractive
Given this information, which of the following statements is likely to be true? A) Both countries are likely to be capitalistic. B) Both countries are likely to be totalitarian. C) Country A is likely to have well-defined property rights, while country B is likely to lack well-defined property rights. D) Country B is likely to have well defined property rights, while country A is likely to lack well-defined property rights.
A chain saw is an example of which of the following factors of production?
a. Land. b. Labor. c. Capital. d. None of these.
Which of the following adjustments will most likely occur when output exceeds the economy's long-run capacity?
a. Prices will decline, bringing actual output into balance with its potential. b. The natural rate of unemployment will increase and, thereby, restore equilibrium. c. Higher resource prices and costs will reduce short-run aggregate supply until output falls to the economy's long-run capacity. d. Lower interest rates will increase the economy's long-run capacity and restore equilibrium.
A firm lacks market power if it cannot influence __________
Fill in the blank(s) with correct word