The price elasticity of supply is
A) negative.
B) zero.
C) positive.
D) unknown, depending on other factors.
C
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To create a market
A) roles must be assigned. B) agents need instructions. C) property rights must be defined. D) transactions costs must be zero.
A reason why the CPI overstates the cost of living is it
A. only measures the effects of inflation on the poor. B. makes no attempt to update the market basket. C. updates the market basket infrequently, thereby missing the steep price decline in the early adoption period. D. makes no attempt to ascertain what average people buy.
If a basket of goods costs 10 dollars in the United States and 11 euros in Belgium, then purchasing power parity will exist if the exchange rate between the euro and the dollar is:
A. 11 euros per dollar. B. 1.1 dollars per euro. C. 10 dollars per euro. D. 1.1 euros per dollar.
A geologist tells the ACME Mining Company that she's certain there is a gold vein one thousand feet below the surface of its property, but ACME still decides not to mine for that gold. How would an economist explain their decision?
What will be an ideal response?