A demand curve with an elasticity of 1.0 is a unit-elastic demand curve
a. True
b. False
Indicate whether the statement is true or false
True
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From a normative perspective, the role of the budgeting process is to allocate scarce resources to their most highly valued uses
a. True b. False
The base year is the year
A) in which prices are unstable. B) in which prices are lowest. C) in which prices are highest. D) that serves as a reference point or benchmark. E) in which nominal output is largest.
Self-adjustment of markets is assumed in:
A. Classical economic theory. B. Keynesian theory. C. Supply-side economic theory. D. The eclectic viewpoint.
By invoking the assumption of ceteris paribus, economists
A. consider the impact of all relevant factors. B. hold all variables constant when analyzing a model. C. exclude irrelevant detail when analyzing a model. D. isolate the impact of one single variable while holding all other variables constant.