If the percentage change in the quantity demanded of a good equals the percentage change in price, price elasticity of demand is:
a. elastic.
b. inelastic.
c. perfectly elastic.
d. unitary elastic.
d
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Which of the following is not true when a monopoly market is in equilibrium?
A) Consumer well being would be improved if less resources were allocated to the industry in which the monopoly operates. B) Price > MC. C) Price > MR. D) Price = Average Revenue.
Different people may have different tastes, but their tastes do not change over time
a. True b. False
The threat of confiscated private property diminishes the incentive to invest
a. True b. False Indicate whether the statement is true or false
Which of the following offers the best example of a positive externality?
a. A coastal dairy farmer's undeveloped land offers unimpeded views of the ocean for a nearby neighborhood. b. A pulp mill emits chlorine pollution into the water, harming members of society. c. A welding shop makes a lot of noise, reducing the property values of nearby homes. d. A person goes to a store and pay $0.75 for a candy bar that he can eat.