Demand is said to be ___________ when the quantity demanded is very responsive to changes in price.
a. elastic
b. unit elastic
c. inelastic
d. independent
a. elastic
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A ________ system is one in which households pay the same percentage of their incomes in taxes regardless of their income level
A) progressive B) regressive C) proportional D) complementary
Which of the following statements is TRUE about the optimal quantity of pollution?
A. Firms should be allowed to determine the profit-maximizing amount of pollution abatement. B. Pollution abatement should continue up to the point where marginal cost equals the average total cost. C. Trade-offs exist between producing a cleaner environment and producing other goods and services. D. It equals zero.
Refer to the table below. Diminishing marginal returns set in with the addition of the:
Assume that the only variable resource used to produce output is labor.
A. First unit of labor
B. Second unit of labor
C. Third unit of labor
D. Fourth unit of labor
The figure above shows the demand and cost curves for a single-price monopoly. The firm will produce ________ units and set a price of ________ per unit
A) 15; $20 B) 10; $20 C) 10; $30 D) None of the above answers is correct.