In general, a "big ticket item" such as a house or new car will
A) tend to have a more inelastic demand the more time that passes.
B) tend to have an inelastic demand because spending on the item takes up a large share of the average consumer's budget.
C) tend to have an inelastic demand because it has many substitutes.
D) tend to have a more elastic demand than a lower-priced good.
D
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Which of the following is NOT a flow variable?
A) saving B) consumption C) investment D) savings
Mr. Jones, an elderly man living on his retirement, pulls $100,000 from certificates of deposit (CDs), which were returning an annual rate of return of 5%
He thinks the credit freeze is over and stock markets are headed up, but ends up losing 40% in his first year of investing. What was Mr. Jones's rate of economic profit? A) 5% B) 35% C) -35% D) -40% E) -45%