Taxes are injections into the circular flow of income and expenditure model

Which of the following statements is true of the Europeans in the period of colonization?

A) Europeans set up extractive economic institutions in all areas. B) Europeans set up relatively extractive economic institutions in areas that had greater population densities. C) Europeans set up relatively inclusive economic institutions in areas that had greater population densities. D) Europeans set up inclusive economic institutions in all areas.

If the price of a a good increases by 10 percent and the quantity supplied increases by 5 percent, then the elasticity of supply is

A) greater than one and supply is elastic. B) negative and supply is inelastic. C) less than one and supply is elastic. D) less than one and supply is inelastic. E) greater than one and supply is inelastic.