The greater is the absolute price elasticity of demand, the
A) larger is the responsiveness of quantity demanded to the price change.
B) smaller is the responsiveness to a price change.
C) larger is the income of the buyer.
D) higher is the change in demand to an income change.
Answer: A) larger is the responsiveness of quantity demanded to the price change.
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Government's monopoly on force implies that government can both protect and violate rights
a. True b. False
Which of the following is NOT an inference of the rational expectations hypothesis?
A) Government policy actions have no real effects in the short run unless the actions are unanticipated. B) Government policy actions have no real effects in the long run. C) Government policy actions that are anticipated have no real effects in the short run. D) Government policy actions that are unanticipated have no monetary effects in the short run.