The demand for diet soft drinks (as a group) is relatively inelastic because

A) there are many of them on the market.
B) there are few substitutes.
C) the purchase of a soft drink represents a large portion of a person's budget.
D) none of the above.

Answer: B

Economics

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The benefit of a subsidy accrues mostly to consumers

A) in every instance. B) if Ed/Es is large. C) if Ed/Es is small. D) if Ed and Es are equal. E) in no instance.

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Foreign portfolio investment is sometimes called hot money because:

A. it is often invested in the assets which yield the highest returns in the world. B. earnings often go untaxed by the home government. C. it can be withdrawn from a country very quickly. D. it is very difficult to trace.

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