When the absolute price elasticity of demand equals 0.9, demand is
A) elastic.
B) unit-elastic.
C) inelastic.
D) undetermined without more information.
Answer: C
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The decision to go to graduate school is a rational one for a college student if the
A) cost is not too great. B) marginal cost exceeds the marginal benefit of graduate school. C) marginal benefit of graduate school exceeds the marginal cost. D) opportunity cost of graduate school equals zero. E) student carefully compared the social benefits of this decision.
Naturally born members of the U.S. population resisted immigration in the antebellum period for all of the following reasons except
(a) Immigrants were prisoners and outcasts from other countries. (b) Immigrants could gain political power and possess political influence. (c) Immigrants displaced U.S. born laborers. (d) Immigrants brought their own religions and spiritual beliefs.
Which of the following is an example of peak-load pricing?
A) Charging less for vacations to Hawaii during December and January B) Charging more for electricity on hot days C) Setting price equal to marginal cost when there is a capacity constraint D) Selling excess capacity at lower prices
Minimum wages are:
A. not very controversial. B. always needed to guarantee workers an acceptable standard of living. C. a form of government interference in the free market. D. only enforceable at the federal level.