Price elasticity of demand can be written as percentage change in Q divided by percentage change in P
a. True
b. False
Indicate whether the statement is true or false
True
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The most extensive indexing in the United States is in
a. interest payments on bonds or savings accounts. b. government transfer payments, including Social Security benefits. c. government contracts for military goods. d. escalator clauses in wage and salary contracts.
The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
According to the United Nations, the largest expected growth in population for the coming decades will occur on which continent?
A) South America B) Africa C) Europe D) North America
Steve is in a consumer equilibrium. Then, the price of steak increases from $6 a pound to $8 a pound. Steve decreases the number of pounds of steaks he buys each week ________
A) and decreases his total utility B) only if his income also decreases C) so that the marginal utility per dollar spent on steaks is the same as it was when the price was $6 a pound D) so that both his total utility and his marginal utility from steak fall