The price elasticity of demand along a linear demand curve is
A) more elastic at higher prices than at low prices.
B) infinite.
C) one.
D) constant.
A
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Industrial production is an example of a:
A) leading indicator. B) coincident indicator. C) lagging indicator. D) none of the above.
Suppose capital and labor are perfect substitutes in a long-run production process. If labor costs $15 per hour and the rental rate of capital is $20 per hour, what can we say about the profit maximizing choice of labor and capital inputs?
A) We will only use labor in the production process B) We will only use capital in the production process C) We will use equal amounts of capital and labor D) The optimal capital-labor ratio is 0.75-to-1.
Externalities are benefits or damages conferred upon people who are directly involved in an exchange of a good or service.
Answer the following statement true (T) or false (F)
A rise in interest rates tends to contract the economy by appreciating the currency and reducing net exports.
Answer the following statement true (T) or false (F)