If there are only two goods and these are consumed in fixed proportions, the price elasticities of demand for these two goods will sum to:
a. 0.0.
b. -0.5.
c. -1.0.
d. a number between 0 and -1.
c
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Which of the following statements is correct?
A) An increase in the money wage rate shifts the aggregate demand curve leftward. B) An increase in the price level shifts the aggregate demand curve leftward. C) An increase in the price level shifts the aggregate demand curve rightward. D) An increase in the quantity of the money shifts the aggregate demand curve rightward. E) An increase in the real interest rate shifts the aggregate demand curve rightward.
A rising rate of inflation: a. makes people more willing to hold money as an asset
b. reduces the usefulness of money as a store of value and thus increases the velocity of money. c. increases the usefulness of money as a medium of exchange and thus reduces the velocity of money. d. is usually preceded by a reduction in the money supply. e. does not have any effect on the velocity of money.
Being first only works
A) if accounting profits are earned in the first year. B) if the entrepreneur has the working capital of a large firm. C) in a winner take all situation. D) all of these choices.
If the least-cost input combination doesn't include all inputs, it's called:
A. a boundary solution. B. an incomplete solution. C. an interior solution. D. an efficient solution.