The above figure shows a linear (straight-line) demand curve. Starting at point A and then moving to point B and then point C, the price elasticity of demand
A) increases.
B) decreases.
C) increases and then decreases.
D) decreases and then increases.
B
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Steve is finding it impossible to get over his most recent break-up and finds himself talking about her constantly. An example of a commitment device that Steve could use to get over her would be:
A. to allow Steve's best friend to punch him in the arm any time he mentions her name. B. to take a cold shower every morning. C. to start dating someone else. D. None of these is a commitment device.
If Melanie had $200,000 of income and spent $180,000 on consumption in 2010 and had $300,000 of income and spent $240,000 on consumption in 2011: a. her APC in 2010 was 0.8. b. her APC in 2011 was 0.9. c. her MPC was 0.6
d. her MPC was 0.8.
In the early 2000s, analysts feared that low academic achievement in math in the United States may reduce U.S. economic growth by as much as half a percentage point per year. In terms of factors leading to growth, the low math scores indicate that the United States may be at a growing disadvantage in terms of:
A. human capital. B. growth-compatible institutions. C. technology. D. social capital.
In a perfectly competitive industry, economic profit
A. Can persist in the long run because of homogeneous products. B. Will always be negative in the long run because of ease of entry. C. Can persist in the long run because of barriers to entry. D. Will approach zero in the long run as more firms enter the market.