If the absolute value of the price elasticity of demand for DVD movies is 0.8 then the elasticity of demand of the DVD for the movie The Hangover should be
A) less then 0.8 in absolute value.
B) equal to zero because the DVD of this movie has been out for several years.
C) equal to 1 in absolute value.
D) greater than 0.8 in absolute value.
D
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The debt service ratio is the ratio of
(a) external debt to the size of the service sector. (b) external debt to total GNP. (c) internal debt to the size of the service sector. (d) internal debt to total GNP. (e) none of the above.
Which of the following statements is correct? With respect to efficiency wage models,
a. their key element is an explanation of why the efficiency (or productivity) of workers depends on the real wage. b. the rationale underlying those models implies that firms will set the real wage above the market clearing level. c. they explain a real wage rigidity. d. all of the above
A way to summarize the actions and payoffs of a sequential game is to use a:
A. decision matrix. B. decision tree. C. payoff tree. D. flowchart.
The size of the spending multiplier depends on the marginal propensity to consume (MPC)
a. True b. False Indicate whether the statement is true or false