Lack of Good Substitutes for a Particular Product Affects Its

question 1

Multiple Choice

Lack of good substitutes for a particular product affects its demand curve as follows:

• A) Makes it more elastic
• B) Makes it less elastic
• C) Makes it unitary elastic
• D) Doesn't affect it at all
• E) Cannot be determined without knowing the supply curve

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Definitions:

Current Account Deficit

Occurs when a country's total imports of goods, services, and transfers are greater than its total exports, indicating that it is spending more on foreign trade than it is earning.

Capital Account Deficit

Occurs when a country's total payments from its capital account transactions exceed its total receipts.

Goods Imports

The act of bringing in goods and services from a foreign country for trade or sale within a domestic market.

Net Investment Income

The profit from investments after deducting all related expenses, such as interest payments and fees.