The longer the time period under study,
A. the more elastic is the price elasticity of demand.
B. the less sensitive consumers will be to price changes.
C. the more likely any given price cut will result in a smaller reaction by the consumer.
D. the more inelastic is the price elasticity of demand.
Answer: A
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Which of the following equations based on capital (K) and labor (L) inputs does not represent a plausible production function?
A) F(K,L) = 3KL B) F(K,L) = 3K C) F(K,L) = K + L - 1 D) F(K,L) = 10(KL)0.5
Expenditures for attending college can be viewed as an investment in human capital
a. True b. False Indicate whether the statement is true or false
Private goods are both
a. excludable and nonrival in consumption. b. nonexcludable and rival in consumption. c. excludable and rival in consumption. d. nonexcludable and nonrival consumption.
Which of the following statements is most correct?
A. The ECB and FOMC are equally successful at keeping the target rate in range. B. The ECB is more successful at keeping the market rate closer to the target rate than the FOMC until the Fed began paying interest on reserves . C. The FOMC is more successful at keeping the market rate closer to the target rate than the ECB until the Fed began paying interest on reserves. D. The ECB seldom has the market rate close to the target rate.