Demand for a good is said to be inelastic if the quantity demanded increases slightly when the price falls by a large amount.

Which of the following is true according to the circular flow model?

A. Firms are suppliers in both the product and factor markets. B. Firms are demanders in the product markets and suppliers in the factor markets. C. Households are demanders in both the product and factor markets. D. Households are demanders in the product markets and suppliers in the factor markets. E. The government is a demander in the product market only.

If there are 10,000 people in your age bracket, and 10 of them died last year, an insurance company believes that the probability of someone in that age bracket dying this year would be

A) 0. B) .001. C) .0001. D) 1,000.