If demand for a good is price elastic, then the price elasticity will be:
a. equal to one.
b. equal to zero.
c. greater than one.
d. less than one.
e. less than zero.
c
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Which of the following statements concerning saving is true?
A. A country's saving rate is unrelated to its growth rate. B. A country's growth rate is unrelated to its national income. C. An increase in the rate of saving will lead to a reduction in consumption in the short run and in the long run. D. An increase in the rate of saving decreases gross domestic income by reducing current consumption but increases current and future gross domestic income through investment in capital goods.
Opportunity cost is the:
a. cost incurred when one fails to take advantage of an opportunity. b. price paid for goods and services. c. cost of the best option forgone as a result of choosing an alternative option. d. undesirable aspects of an option.