If the Price-Elasticity Coefficient for a Good Is 1

question 373

Multiple Choice

If the price-elasticity coefficient for a good is 1.75, the demand for that good is described as

• A)normal.
• B)elastic.
• C)inferior.
• D)inelastic.

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Definitions:

Government Transfer Payments

Payments made by the government to individuals through programs such as Social Security and unemployment insurance, without any services being rendered in return.

Automatic Stabilizer

Economic policies and programs, such as unemployment insurance and taxation, that automatically adjust to counteract economic fluctuations without additional government intervention.

Natural Rate

Often refers to the natural rate of unemployment, indicating the lowest unemployment rate an economy can sustain over the long term without causing inflation.

Unemployment

The situation where individuals who are able and willing to work do not find jobs, expressed as a percentage of the labor force.