In Figure 6-5, if price falls from point A to point B along the unit-elastic demand curve,
A. total expenditure remains unchanged.
B. total expenditure increases.
C. total expenditure decreases.
D. total expenditure first increases and then declines.
Answer: A
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In Figure 3-2, a move from a point like B to a point such as D
A. is not possible. B. can be attained with a more efficient allocation of resources. C. can be attained if there is an improvement in technology. D. can be attained if unused resources are put into production.
"Discouraged workers" comprise the percentage of those in the: a. labor force who are employed and are seeking employment
b. labor force who have chosen early retirement because they dislike their work. c. adult population who want to be employed but have given up the search for a job. d. labor force who are looking for a job but cannot find one. e. adult population who are in the labor force.
The SRAS curve is vertical at the natural level of real output
a. True b. False Indicate whether the statement is true or false
Market pricing as a kind of automatic signalling system that responds to changes in relative scarcities and rapidly redirects economic activity is part of
What will be an ideal response?