The Demand for a Necessity Whose Cost Is a Small

question 179

Multiple Choice

The demand for a necessity whose cost is a small portion of one's total income is

• A)perfectly price inelastic.
• B)perfectly price elastic.
• C)relatively price inelastic.
• D)relatively price elastic.

Calculate the effects of changes in government spending and taxation using fiscal multipliers.

Identify fiscal policy measures for addressing budget deficits and national debt.

Evaluate the effectiveness and timing of fiscal stimulus packages.

Understand the significance of balancing the budget over the business cycle.

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Definitions:

Sponsorship

Financial or material support provided to events, activities, or individuals, often for promotional benefits.

Website

A collection of related web pages, including multimedia content, typically identified with a common domain name, and published on at least one web server.

Validity

The extent to which a concept, conclusion, or measurement is well-founded and corresponds accurately to the real world.

Leading Question

A question that prompts or encourages the desired answer, often suggesting the answer within the question itself.