If supply is perfectly inelastic, the price elasticity of supply is equal to:
A. 1.
B. 0.
C. infinity.
D. a negative number between 0 and infinity.
Answer: B
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Suppose that one country has a GDP that is ten percent of its richer neighbor, but the poorer country is growing at a rate of eight percent per year while the richer country is growing at a rate of two percent per year
Which country will be richer in 60 years?
A decrease in disposable income will shift the aggregate demand curve to the left
Indicate whether the statement is true or false
Airlines that restrict members' ability to use frequent flyer miles during holiday periods likely do so because: a. the opportunity cost to airlines of filling seats with frequent flyers is lower at these times
b. the opportunity cost to airlines of filling seats with frequent flyers is higher at these times. c. passengers have more transportation alternatives available to them at these times. d. airlines want to protect their most loyal customers from the discomfort of overcrowded airplanes.
In general, the MRP _____ as output increases.
A. declines B. rises C. stays the same