If a product has an elastic demand, it means that:

If a product has an elastic demand, it means that:
 a. consumers are relatively sensitive to a change in the price of the product.
  b. consumers are relatively insensitive to a change in the quantity demanded of the product.
  c. consumers are relatively insensitive to a change in the price of the product.
  d. producers are relatively insensitive to a change in the price of the product.
  e. producers are relatively sensitive to a change in the quantity demanded of the product.

QUESTION 2

Which of the following individuals was known for as an early contributor to behavioral economics?
 a. Jeremy Bentham
  b. Herbert Simon
 c. Milton Friedman
  d. Ben Bernanke

QUESTION 3

A market is classified as a monopsony when there is only one seller of the product.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 4

When the elasticity of demand for a particular good is between zero and -1, _____.
 a. demand is elastic
  b. demand is inelastic
  c. demand is unit-elastic
  d. the good is an inferior good
  e. the good is a normal good

QUESTION 5

Economic analysis that focuses on bounded rationality and psychological insights is known as:
 a. behavioral economics.
  b. Keynesian economics.
  c. Austrian economics.
 d. supply-side economics.

QUESTION 6

Monopsonists tend to exploit the resources as they are the sole employers of the resources.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 7

If a 1 percent change in the price of a good causes a 1 percent change in the quantity demanded of that good, then the demand is said to be:
 a. perfectly elastic.
  b. income elastic.
  c. unit-elastic.
  d. inelastic.
  e. perfectly inelastic.