Assuming price elasticity of demand is reported as an absolute value, an inelastic demand has a measured elasticity:
A. less than one.
B. greater than one.
C. exactly one.
D. greater than zero.
Answer: A
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John Maynard Keynes was the author of the book, The Economics of Welfare, which first addressed environmental problems in terms of externalities
a. True b. False Indicate whether the statement is true or false
A $2 tax per gallon of paint placed on the buyers of paint will shift the demand curve
a. downward by exactly $2. b. downward by less than $2. c. upward by exactly $2. d. upward by less than $2.
Goods that are subject to excludability provide examples of private goods.
Answer the following statement true (T) or false (F)
Suppose that you lend $5,000 to a friend who pays you back $5,400 the next year. Suppose that prices that year rose by six percent and the real rate of return in the stock market was five percent. Your friend says that he or she was being more than fair by giving you more than the rate of inflation as a return. What do you think?
What will be an ideal response?