At all the points below the midpoint on a linear demand curve, the value of price elasticity of demand is:
A) zero.
B) greater than one.
C) less than one.
D) equal to one.
C
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The World Bank has extended loans to the government of a developing country to finance construction of a canal with a certain future flow of earmings Now, however, the government has decided to redirect those funds to build a casino that may or may not generate suficient profits to allow the government to repay the loan This situation is an example of
a. Systemic Risk b. Moral Hazard c. Adverse Selection d. Asymmetric Information e. Principle Agent Problem
For an economy with only two goods, skate boards can be added to bicycles to compute the GDP by
A. Dividing dollar values of output by price and adding the result. B. Dividing output by price and adding the resulting dollar values. C. Multiplying output by price and adding the resulting dollar values. D. Multiplying dollar values of output by price and adding the result.
In which of the following U.S. occupations is the rate of unionization the highest?
A. Protective services. B. Sales workers. C. Managers. D. Transportation workers.
Ajax has just discovered that the marginal revenue product generated by the last worker hired was $125 while the marginal factor cost was $85. What should Ajax do?
A) Leave the level of production unchanged. B) Increase the amount produced. C) Reduce the amount produced. D) Collect more information before making a decision.