If the absolute price elasticity of demand of a good is 1.8, then the total revenues will increase if its market price
A) increases.
B) decreases.
C) stays the same.
D) changes, but we can't tell without more information if the price increases or decreases.
Answer: B
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As a candidate for president of the United States, Barak Obama was an ardent supporter of outsourcing
Indicate whether the statement is true or false
When the 2010 Patient Protection and Affordable Care Act is fully implemented, it will
a. substantially reduce the share of health care expenses paid by a third party. b. require all Americans to purchase health care insurance from either a private or government source. c. increase the competitiveness of the health insurance business by allowing people to purchase the insurance across state boundaries. d. reduce the demand for health care and thereby lead to lower prices for health care services.
The equation for the quantity theory of money can be written as (M × Y = P × V).
Answer the following statement true (T) or false (F)
Refer to the diagrams. The solid lines are production possibilities curves; the dashed lines are trading possibilities curves. The trading possibilities curves imply that:
A. both countries have a trade surplus that will result in economic growth.
B. the domestic production possibilities curves entail unemployment and/or the domestic
misallocation of resources.
C. world resources will be allocated more efficiently if the two nations specialize and trade based on comparative advantage.
D. both nations will be worse off as a result of international specialization and trade.