Society can produce at a point outside the production possibilities frontier, but only if it is using all of its resources efficiently
a. True
b. False
Indicate whether the statement is true or false
False
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Interest deductibility does not provide an incentive for debt finance.
A. True B. False C. Uncertain
The way that a change in price determines whether or not consumers buy goods
a. elasticity of demand b. substitution effect c. law of demand d. complement e. substitute
Assume that demand decreases by 3 percent, the absolute value of price elasticity of demand is 1.0, and price elasticity of supply is 1.0. What is the percentage price change in this case?
What will be an ideal response?
In macroeconomic models, prices are assumed to be completely inflexible in:
A. The very short run only B. The short run and remains so over time C. The very long run D. Situations when the changes in demand look to be permanent