If a one percent increase in the population leads to a five percent increase in the quantity sold, an economist would claim
A) the good is elastic with respect to population.
B) the good is inelastic with respect to population.
C) the good is a fad.
D) consumers are misinformed about the quality of the product.
A
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When exchange rates are ________, we say that the country's exchange rate is fixed
A) determined in the market B) relatively stable C) set by a country's central bank D) determined by supply and demand
Entrepreneurship refers to
What will be an ideal response?
What type of economic system is commonly described as being controlled by an "invisible hand"?
A. a traditional economy B. a command economy C. a market economy D. a communist economy
According to the figure shown:
A. there is no stable equilibrium to the game. B. both players will act in their own self-interest and get an optimum equilibrium that is stable. C. both players will act in their own self-interest and get a stable, but less than optimum, equilibrium. D. both players have an incentive to charge a low price and undercut the competition.