If demand is perfectly inelastic, the absolute value of the price elasticity of demand is
A) zero.
B) less than one.
C) more than one.
D) equal to the absolute value of the slope of the demand curve.
Answer: A
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Refer to the scenario above. The demand for Sporty's soccer balls is 2,500 units if ________
A) the price charged by Sporty is higher than the price charged by Go! B) the price charged by Go! is higher than the price charged by Sporty C) the price charged by Sporty is equal to the price charged by Go! D) the price charged by Go! is higher than the unit cost of producing a ball
The "expected real" interest rate is the
A) rate actually quoted in financial markets. B) rate actually quoted in financial markets minus the expected inflation rate. C) rate actually quoted in financial markets plus the expected inflation rate. D) rate actually quoted in financial markets divided by the expected inflation rate.
Average Fixed Cost is the
a. horizontal distance (at any particular cost level) between ATC and AVC b. vertical distance (at any particular quantity) between ATC and AVC c. vertical distance (at any particular quantity) between ATC and the horizontal axis d. vertical distance (at any particular quantity) between AVC and the horizontal axis e. horizontal distance (at any particular cost level) between ATC and the vertical axis
List five major economic activities of government, and give an example of each