If the absolute price elasticity of demand is 0.1, a 10 percent decrease in the price will cause
A. the quantity demanded to increase by 10 percent.
B. the quantity demanded to increase by 100 percent.
C. the quantity demanded to increase by 0.1 percent.
D. the quantity demanded to increase by 1 percent.
Answer: D
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In a society where government mandates that everyone shares the product of one's hard work with everyone else, people will tend to work harder than they would if they could keep the full product of their work
Indicate whether the statement is true or false
The table above shows the PPF of an island community. This community's opportunity cost of producing 1 pound of fish ______
A. is the increase in the quantity of berries gathered as the quantity of fish increases by 1 pound B. increases as the quantity of berries gathered increases C. is 10 pounds of berries if the quantity of fish increases from 2 to 3 pounds D. increases as the quantity of fish caught increases
The risk of financing a project by issuing common stock is borne by
A. the issuing firm only. B. the stockholders only. C. both the issuing firm and the stockholders. D. the government.
Suppose the marginal value of bread in terms of wine is 1/2 bottle of wine per loaf of bread, while the relative price of bread in terms of wine is 1/4 bottle of wine per loaf of bread. Explain how the consumer can adjust his purchases to raise his level of satisfaction.
What will be an ideal response?