The price elasticity of demand is
a. irrelevant to the determination of prices, incomes, and interest rates
b. indeterminate in most cases
c. the percentage change in price divided by the percentage change in quantity demanded
d. the percentage change in price with respect to the percentage change in quantity supplied
e. the percentage change in quantity demanded divided by the percentage change in price
E
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Exhibit 7-6 Total cost curves
In Exhibit 7-6, the total fixed cost is:
A. 0. B. 1,000. C. 3,000. D. 5,000.
While studying with your friend, your friend states, "Our leisure time increases GDP but lowers our standard of living because it reduces the amount of goods and services we can consume." Is your friend's statement correct?
What will be an ideal response?
By human capital, economists mean
A) machines that replace humans. B) machines engineered to avoid operator injury. C) the accumulated skill and knowledge of humans. D) humans who perform repetitive tasks.
Given the reserve-holding ratio e and the fraction of deposits held as cash c, the money multiplier becomes
A) ec/(e - c). B) (1 + c)/(e + c). C) (1 - c)/ec. D) 1 - e - c. E) ec - (1/c).