The absolute price elasticity of demand for a product that has many good substitutes is probably
A) less than 1.
B) greater than 1.
C) equal to 1.
D) infinity.
Answer: B
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Zachary spends his day studying for a total of four hours and exercising for one hour. Using the concept of utility to explain his choices, we can say
A. the total utility gained from exercising for one hour is greater than the total utility from studying for four hours. B. the marginal utility of exercising for the first hour was greater than the marginal utility of studying for the first hour. C. the marginal utility of studying for a fifth hour will be negative. D. the marginal utility from studying for a fifth hour is less than the marginal utility from the first hour of exercise.
The largest single expenditure component of GDP is: a. consumption
b. investment. c. government purchases. d. net exports.
In the above figure, a movement from point B to point C could be explained by
A. the real-balance effect. B. increased government spending. C. an increase in the price level. D. a decrease in the quantity of money in circulation.
Related to the Economics in Practice on p. 294: In the price-fixing case against the Taiwanese firm AU Optronics, the DOJ claimed that the price fixing resulted in ________ paying more for products with LCD screens.
A. businesses B. government agencies C. consumers D. All of the above are correct.