If the price of a good decreases by 3 percent and total revenue increases, the elasticity of demand for the good could possibly be
A. 1.3
B. 1
C. 0.8
D. 0.2
E. 0
A. 1.3
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The three most important financial centers in the world today are New York, London, and Tokyo
Indicate whether the statement is true or false
Sofia, a political science student, thinks that the government should intervene to revive declining industries like video rentals and print newspapers
The government, she reasons, can resolve the coordination problem of getting the agents in these markets to trade. Do you agree with her? Explain your answer.
Which of the following best explains why the elasticity of supply of labor for an individual with a Cobb-Douglas utility function (for consumption and leisure) is zero?
a. Income and substitution effects are precisely offsetting. b. The elasticity of substitution of leisure for consumption is zero. c. Leisure is an inferior good. d. Consumption is subject to diminishing marginal utility.
How are the economic forces that apply to renewable resources different than those that apply to non-renewable resources?
a. Non-renewable resources must be protected by government policies to prevent depletion. b. Non-renewable resources do not have any substitutes so the economic forces are different than those for renewable resources.. c. Both renewable and non-renewable resources may become scarcer over time so the economic forces at work are similar. d. Renewable resources are not subject to the laws of economics since the scarcity condition no longer holds.