If a straight-line demand curve slopes down, price elasticity will:
a. always be greater than one.
b. always equal one.
c. remain the same at all points on the demand curve.
d. change between points along the demand curve.
d
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Refer to Figure 9.2. A movement from point b to point a could be caused by a(n)
A) increase in government spending. B) decrease in the price of oil. C) increase in taxes. D) a massive crop failure.
In 2008, as the economy moved into a recession,
A) cyclical unemployment increased. B) structural unemployment decreased. C) natural unemployment decreased. D) frictional unemployment was not affected. E) the number of marginally attached workers decreased.
If the price of x falls, the budget constraint:
a. shifts outward in a parallel fashion. b. shifts inward in a parallel fashion. c. rotates outward about the x-intercept. d. rotates outward about the y-intercept.
Under the theory of rent-seeking, a monopoly will spend valuable resources to guarantee its monopoly position
Indicate whether the statement is true or false