When the price of a product is increased 10 percent, the quantity demanded decreases 15 percent. The price-elasticity of demand coefficient for this product is
What will be an ideal response?
1.5.
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The statement “Resources employed in producing X are better suited to making Y” is another way of saying resources
A. are specialized. B. are scarce. C. are used inefficiently. D. are unproductive. E. have no opportunity cost.
The four somewhat overlapping theories of how the entrepreneur is able to earn a profit are: (1) ___________; (2) ___________; (3) ___________; and (4) ____________.
Fill in the blank(s) with the appropriate word(s).
When money is used to purchase goods and services, it serves as a:
A. medium of exchange. B. store of value. C. unit of account. D. double coincidence of wants.
The impact on world well-being of an export subsidy and a countervailing duty (of the same size as the subsidy) is
A. negative due to overproduction. B. negative due to under-consumption. C. negative due to deadweight loss. D. zero.