The Longer the Time Period Under Study

question 15

Multiple Choice

The longer the time period under study,

• A) the more elastic is the price elasticity of demand.
• B) the less sensitive consumers will be to price changes.
• C) the less adjustment consumers will make to price changes.
• D) the more inelastic is the price elasticity of demand.
• E) the more likely any given price cut will result in a smaller reaction by the consumer.

Grasp the Five Fundamental Questions of economics within a market system.

Identify unique characteristics of a market system including private ownership and competition.

Understand the concept and significance of specialization in economic production.

Recognize the influence of consumer demand on market supply and employment.

---

Definitions:

Product Market

The marketplace where final goods or services are traded between sellers and consumers.

Financialization

The process by which financial markets, financial institutions, and financial elites gain a greater influence over economic policy and economic outcomes.

Labor Relations

The study and practice of managing the relationships between employers and their workforce, including the negotiation of collective bargaining agreements and handling of disputes.

Employee Training

Programs and activities designed to improve the knowledge and skills of employees for better performance.