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1. If twelve units of a good are sold when the price is $1 per unit, and 8 units are sold at a price of $1.50 per unit, then demand isa. elasticb. inelasticc. of indeterminate elasticityd. unit elastic
2. A change in demand would be illustrated bya. a drop in price, which causes people to buy moreb. an increase in price, which causes people to buy lessc. a change in people's preference that causes them to buy either more or less than befored. all of the above
3. An example of a macroeconomics model isa. the price of chicken influences the quantity of chicken boughtb. the size of the total national output depends on the size of total spendingc. the output of a product is influenced by the cost of production for the productd. all of the above
4. According to economics liberalism, the regulating force of the economy isa. self-interestb. laissez-fairec. competitiond. the government
5. To exercise the law of comparative advantage, a nationa. must produce some goods using fewer resources than its trading partnerb. does not have to produce any goods using fewer resources than its tradingpartnerc. must produce some goods on an equal footing with its trading partnerd. must show a lower absolute cost of production than its trading partner
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