The Statistical Discrepancy in the Balance of Payments

question 156

Multiple Choice

The statistical discrepancy in the balance of payments

• A)is always positive
• B)is always negative
• C)is always zero
• D)is either positive, negative, or zero
• E)is indeterminate

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Definitions:

Relatively Elastic

Describes a situation where the quantity demanded or supplied changes significantly in response to a change in price.

Unit Elastic

A demand or supply situation where a percentage change in price leads to an equal percentage change in the quantity demanded or supplied.

Market Period

A very short time frame in which the supply of a good is completely inelastic, meaning that the quantity cannot be changed in response to a change in price.

Perfectly Inelastic

A situation where quantity demanded or supplied does not change in response to any price change.