A Key to Economic Growth and Development Is to

question 50

Multiple Choice

A key to economic growth and development is to

• A) locate more deposits of gold and other precious metals.
• B) emphasize a fair and equitable distribution of income.
• C) provide people with better education.
• D) allow government planning to guide the allocation of resources.

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Definitions:

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its price, with high elasticity indicating sensitivity to price changes.

Income Elasticity

A measure of how the quantity demanded of a good responds to a change in consumers' income, indicating the good's necessity or luxury status.

Price Inelastic

Price inelastic refers to a situation where the demand for a good or service is relatively unaffected by changes in its price, indicating that consumers continue to purchase the product even if its price rises or falls significantly.