"The price elasticity of demand is constant along a straight-line demand curve." Is this statement true or false?
Indicate whether the statement is true or false
False. The price elasticity of demand decreases when moving downward along a straight-line demand curve.
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In a market economy, uncertain levels of inflation
A) make prices less useful as signals for resource allocation. B) prompt firms to enter into fewer short-term contracts, and more long-term contracts, with suppliers. C) balance out income redistribution in the long run. D) are more beneficial to lenders than to borrowers, as lenders have a tendency to overestimate the expected inflation rate.
Economists favor the use of peak-load pricing since it can
A. improve the equity of the distribution of income. B. enhance the efficiency in the use of scarce resources. C. improve the profit levels of corporations. D. result in lower levels of pollution.
Money is:
A. fungible, meaning it is easily exchangeable or substitutable. B. not fungible, meaning it can be easily exchanged or substituted. C. an alternative to implicit costs. D. a proven cognitive bias.
Globalization does not reward countries that follow good economic policies with greater access to the savings of the rest of the world to help finance growth and development
a. True b. False Indicate whether the statement is true or false