Demand is inelastic if the price elasticity of demand is
a) less than one
b) equal to one
c) greater than one
d) equal to zero
Answer: a) less than one
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An estimate of a household's long-run average income is called permanent income
Indicate whether the statement is true or false
Game theory is distinctive in that its elements are
A) costs, prices, and profits. B) revenues, elasticity, and profits. C) rules, strategies, payoffs, and outcomes. D) patents, copyrights, and barriers to entry.
Ceteris paribus, how does an expansion in the United States affect U.S. net exports?
What will be an ideal response?
The theory of comparative advantage shows that the gains from international trade result from producing: a. at a lower opportunity cost. b. at a lower absolute cost
c. a labor-intensive good. d. a capital-intensive good.