________ Refers to a Measure of the Sensitivity of Demand

question 52

Multiple Choice

________ refers to a measure of the sensitivity of demand to changes in price.

• A) Price elasticity
• B) A demand curve
• C) Price-value equation
• D) Marginal utility
• E) Income elasticity of demand

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Definitions:

National Treasury

The government department responsible for developing and implementing the country’s financial and tax policies, managing government revenue, and economic policy.

Indexed Social Benefit

Social security or welfare benefits that are adjusted (indexed) over time to maintain their value in the face of inflation or other economic changes.

Federally-Run Program

A government program directly overseen and administered by a federal agency or department.

Tax Expenditure

describes government losses in tax revenue due to deductions, exemptions, and credits allowed to taxpayers, which can be seen as a form of government spending through the tax code.