Which of the following is true with respect to the price elasticity of demand?
a. The coefficient of price elasticity of demand will change with changes in the units of measurement (for instance, going from pounds to ounces).
b. Elasticity of demand is equal to the slope of the demand curve.
c. Elasticity measures the sensitivity of total expenditure to a change in price of a good.
d. Elasticity will tend to be greater for a relatively expensive product than for a cheaper one.
e. A coefficient of 1 means that the percentage change in total expenditure is equivalent to the percentage change in price.
d
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When a nation exports a good, its ________ surplus decreases and its ________ surplus increases
A) consumer; total B) consumer; consumer C) producer; producer D) producer; consumer E) total; consumer
As a general rule, antitrust authorities refer to any firm with a market share above ________ percent as a monopoly even though it is technically a dominant firm.
A) 66 B) 75 C) 95 D) 50
The concepts of exogeneity, strict exogeneity, and predeterminedness
A) are defined in such a way that strict exogeneity implies exogeneity. B) can be used interchangeably. C) are defined in such a way that exogeneity implies strict exogeneity. D) correspond to endogeneity, strict endogeneity, and lagged endogenous variables.
Fred Powell of TruLite makes a verbal pledge to every new employee that he will not lay off employees after they have worked for TruLite for two years and that TruLite will make all promotions internally. Why would Powell make such a pledge? Why is the pledge oral?
What will be an ideal response?