Which of the following statements is inconsistent with an elastic demand curve?
A. The relative change in quantity exceeds the relative change in price.
B. Total revenues fall when prices rise.
C. Buyers are relatively sensitive to price changes.
D. The absolute value of the price elasticity of demand is less than 1.
Answer: D
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The shape of a firm's long-run average cost curve is determined by
a. the degree to which each input encounters diminishing marginal productivity. b. the underlying nature of the firm's production function when all inputs are able to be varied. c. how much the firm decides to produce. d. the way in which the firm's expansion path reacts to changes in the rental rate on capital.
Explain why the actual deficit is a poor measure of fiscal policy.
What will be an ideal response?
When you pay for some purchase with a check, cash must be transferred to another account to pay for the check
a. True b. False Indicate whether the statement is true or false
GATT's contribution to trade liberalization made possible the expansion of world trade in the second half of the twentieth century.
a. true b. false