If demand is perfectly inelastic, the absolute value of the price elasticity of demand is
A) more than one.
B) less than one.
C) zero.
D) equal to the absolute value of the slope of the demand curve.
C
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The proposition that policy actions have no real effects in the short run if the policy actions are anticipated is known as
A) the policy irrelevance proposition. B) the Keynesian proposition. C) the inflation stabilization proposition. D) the unemployment stabilization proposition.
Due to consumer demand, a candy manufacturer has decided to boost production of caramel chews. This action answered which basic economic question?
a. How will the goods and services be produced? b. Who will get the goods and services? c. What is the best method of production? d. What goods and services will be produced?
Ginger earns an income of $2,000 a week and goes out to dinner 4 times a week. If her income increased to $2,100 she would go out to dinner 5 times a week. Ginger's income elasticity of demand is
A. -0.22 B. 0.22 C. 4.56 D. 2.28
What is the internal rate of return on a new $2,000 heater that would reduce your heating costs by $200 a year forever? Under what conditions would you make the purchase?
What will be an ideal response?