If the absolute value of the price elasticity of demand for aspirin equals 0.8 then
A) aspirin is a normal good.
B) the demand for aspirin is inelastic.
C) aspirin has few substitutes.
D) the demand for aspirin is elastic.
Answer: B
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If there are economies of scale in the transactions demand for money, as income increases, money demand
A) increases proportionately. B) increases less than proportionately. C) increases more than proportionately. D) does not change.
Fixed exchange rates are fixed by
a. international speculators who manipulate the world's currencies. b. international demand and supply. c. national governments. d. All of the above are correct.
Which is a barrier to entry in an industry?
A. Allocative efficiency B. Economic profits C. Profit maximization D. Economies of scale
Most or all of the mark-up revenue from a quota can be captured by the government if the government auctions off import licenses.
Answer the following statement true (T) or false (F)