A 2 percent increase in the price of wheat leads to a 2 percent decrease in the quantity demanded of rice. The absolute price elasticity of demand is
A. 0.1.
B. 6.
C. 3.
D. 1.
Answer: D
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Short run economic costs must be lower than long run economic costs because long run economic costs include the cost of inputs that are fixed in the short run (and thus are not part of short run cost).
Answer the following statement true (T) or false (F)
Evidence that convergence occurs within economies is drawn in part from the example of ________
A) Hiroshima and Nagasaki Japan B) North and South Korea C) West and East Germany during the Cold War D) Hong Kong and Singapore
The time between implementation of a macro-policy change and when the change exerts its primary influence is called the
a. impact lag. b. recognition lag. c. administrative lag. d. tax reform lag.
The marginal physical product of the third unit of labor in Figure 21.1 is
A. 12.0 units per day. B. 13.3 units per day. C. 40.0 units per day. D. 4.0 units per day.