The absolute price elasticity of demand would be the lowest for
A) automobiles.
B) Pizza Hut pizza.
C) salt.
D) movie tickets.
C
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Which of the following best describes supply-side economics?
A) Education affects the incentive to work, save, and invest and, therefore, aggregate supply. B) Tax rates, particularly marginal tax rates, affect the incentive to work, save, and invest and, therefore, aggregate supply. C) Labor productivity affects aggregate supply. D) Education affects labor productivity which affects aggregate supply.
One of the major issues that arose during the Doha round of negotiations involved complaints by ________ about ________
A) developing countries; agricultural subsidies. B) manufacturers; intellectual property C) industrialized countries; enforcement of contracts D) Eastern European countries; European Union tariffs E) South and Central American countries; domestic content requirements
Which of the following is not consistent with perfect competition?
a. all firms face the same costs. b. firms cannot determine the price of the goods they sell. c. the marginal product of labor is diminishing. d. firms negotiate the same wages for different workers.
In a long-run equilibrium, a perfectly competitive firm's average total cost is
A) minimized. B) maximized. C) zero. D) equal to average fixed cost.