Isoelastic demand means that:
A. the elasticity of demand is equal to -1.
B. demand is completely unresponsive to price.
C. the elasticity is demand is infinite.
D. the demand function has the same elasticity at every price.
D. the demand function has the same elasticity at every price.
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Answer the following statement(s) true (T) or false (F)
1. Achieving cost-effectiveness means that the present value of costs (PVC) is minimized for some pre-established benefit goal. 2. To achieve allocative efficiency, the present value of net benefits (PVNB) must be minimized. 3. In conducting a benefit-cost analysis, it is more difficult to assign a dollar value to costs than to benefits. 4. Selecting the social discount rate is among the issues debated in the use of benefit-cost analysis for public policy evaluation.
When Jack's income increases by $1,000, he spends an additional $850 dollars. This implies that his marginal propensity to save is 0.85
Indicate whether the statement is true or false
In answer to the question "How did Britain affect American economic growth?" Hughes and Cain (2011) reach what conclusion?
(a) The colonies were launched with English institutions, and they were allowed to modify them to meet local needs. In exchange for their investment in the colonies, the British expected the American colonies to produce and grow rapidly. (b) British policies were adverse to the colonies because they interfered with efforts to recruit a labor force and maintain employment at something close to full employment. (c) British policies prevented the colonies from going through an Industrial Revolution, as was occurring in England. (d) British policies significantly held down income growth in the colonies because they aimed at increasing the proportion of "primary" output at the expense of commercial and manufacturing output.
How do you calculate the total consumer surplus in any market? It is the area
a. price times quantity b. above the supply curve and below the price c. beneath the demand curve d. beneath the demand curve and above the price e. below the supply curve and above the demand curve