Price elasticity of demand is a measure of the relative responsiveness of the change in quantity demanded to a change in price
a. True
b. False
Indicate whether the statement is true or false
True
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Because of the productivity slowdown in the United States from the mid-1970s through the mid-1990s
A) the standard of living did not change. B) the standard of living increased in the United States. C) real GDP per capita grew more rapidly. D) real GDP per capita grew more slowly.
Personal income less personal taxes is called:
A) personal disposable income. B) national income. C) compensation of employees. D) savings.
The fewer the number of firms present in a market, the:
A. more competition is likely to be present. B. less likely barriers to entry are present. C. more likely market power will exist. D. less like a monopoly it will behave.
Suppose that the nominal value of GDP increased by approximately 2 percent during a given year, but real GDP decreased by 3 percent. Which of the following best explains these events?
a. The money supply decreased by approximately 5 percent. b. Prices fell by approximately 5 percent. c. Prices increased by approximately 5 percent. d. The real productive capacity of the economy increased by approximately 5 percent.