If the absolute price elasticity of demand is equal to 1 in the short run, then in the long run, other things being equal, the absolute price elasticity of demand will be
A) less than one.
B) less than zero.
C) greater than one.
D) equal to zero.
C
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You can buy a season ticket to the Metropolitan Opera for $800. A season ticket plan to see the New York Knicks is $1600. Which of the following is a CORRECT statement?
A) The money price of opera tickets is 1/2 of a Knicks ticket per opera ticket. B) The opportunity cost of a Knicks ticket is 2 opera tickets per Knicks ticket. C) The relative price of an opera ticket is $800. D) the money price of a Knicks ticket is 2 opera tickets per Knicks ticket.
Industrialization through heavy capital investments required savings by households, businesses and/or government bodies
Indicate whether the statement is true or false
Use the following graph to answer the next question.
If the government regulated the pure monopoly and made it produce the level of output that would achieve allocative efficiency, what price and quantity of output levels would we observe in the short run?
A. P1 and Q1 B. P2 and Q3 C. P3 and Q2 D. P4 and Q1
For the purposes of calculating GDP using the expenditure approach, which of the following is not included in the government purchases account?
A. The government's purchase of a computer B. The payroll of the federal government C. Government purchases of pencils D. Welfare payments to the poor