The more narrowly a good is defined, the
a. easier it is to find substitutes, and the less price-elastic is the demand
b. easier it is to find substitutes, and the more price-elastic is the demand
c. more difficult it is to find substitutes, and the less price-elastic is the demand
d. more difficult it is to find substitutes, and the more price-elastic is the demand
e. more difficult it is to find substitutes, but this has no impact on the price elasticity of demand
B
You might also like to view...
Selection bias is a problem when trying to estimate the return to education in a standard human capital model. In this context, what does selection bias refer to?
A. Colleges select who they are willing to accept. B. The data sample is nonrandom. C. The wage-schooling locus does not have a constant slope. D. The wage-schooling locus is estimated to have a negative slope. E. Workers self-select education levels and jobs based on their abilities and preferences.
Which of the following is not a central focus of the "economic perspective"?
A. Marginal analysis B. Scarcity and choice C. The scientific method D. Purposeful behavior
Which of the following is NOT true about dead capital?
A. Dead capital can inhibit economic growth. B. Dead capital will lead to higher investment returns. C. Companies will be less likely to want to invest when a country has a lot of dead capital. D. Dead capital can lead to a situation where resources are not efficiently employed.
Use the information provided in Table 7.2 below to answer the question(s) that follow.
Table 7.2Inputs Required to Produce a Product Using Alternative Technologies
Refer to Table 7.2. If the hourly price of labor is $10 and the hourly price of capital is $1, which production technology should be selected?
A. A B. B C. C D. D