The reason that supply and demand tend to be more price elastic over longer time periods is because
A) it takes time for households and businesses to adjust to price changes.
B) some goods have longer shelf life and are reordered less often.
C) firms incur costs in changing the price of goods on their shelves.
D) the feedback loop from buyers to sellers takes time.
A
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In the public choice (or new political economy) approach to development the emphasis is on
a. growth in the rural sector. b. the self-interested behavior of public officials. c. the dependence of LDCs on former colonial powers. d. the inherent efficiency of developing country markets.
For restrictive covenants to help reduce the moral hazard problem, they must be ________ by the lender
A) monitored and enforced B) written in all capitals C) easily changed D) impossible to remove
If net exports increase by 250 and the mpc is 0.75, equilibrium aggregate output increases by
A) 250. B) 500. C) 750. D) 1000.
Which of the following statements is FALSE?
A) Economists empirically test their models. B) Economic models are not used to forecast. C) An economic model should capture only the essential relationships that are sufficient to analyze the particular problem being studied. D) Economic models relate to behavior rather than to individual thought processes.