The substitution effect reflects a movement along a given
A) horizontal line.
B) vertical line.
C) indifference curve.
D) budget line.
C
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Legal ceilings on the rate of interest charged to individuals
A) guarantee credit is allocated according to need rather than ability to pay. B) make it easier for people with poor credit ratings to obtain loans. C) reduce the probability corporations will obtain scarce credit by bidding funds away from consumers. D) accomplish all of the above. E) accomplish none of the above.
Which of the following is least likely to increase the ratio of investment to real GDP? A reduction in ________
A) transfer payments B) subsidies to farms and corporations C) defense outlays D) spending on highways
If the absolute price elasticity of demand for a product is less than 1, then
A) the absolute price elasticity of demand is inelastic and consumers are relatively insensitive to price changes. B) the absolute price elasticity of demand is inelastic and consumers are relatively sensitive to price changes. C) the absolute price elasticity of demand is elastic and consumers are relatively insensitive to price changes. D) the absolute price elasticity of demand is elastic and consumers are relatively sensitive to price changes.
The problem of political instability has been greatest in which continent?
A. South America B. Europe C. Asia D. Africa