When a demand curve is vertical, the elasticity of demand is equal to
A. 0.
B. 1.
C. ?.
D. -1.
A. 0.
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Products produced domestically and sold in foreign countries are called ________, and products produced in foreign countries and sold domestically are called ________
Fill in the blank(s) with correct word
Which of the statements below best illustrates the use of the market process in determining the allocation of scarce resources?
A) "Let's make this product because this is what we know how to do best." B) "We should consider shifting to products where we can earn even more money." C) "Everyone is opening video stores, why don't we?" D) "We can't stop making this product. This product gave our company its start."
If individuals who sit in the back of the classroom receive lower grades on average than the rest of the class, does that mean that sitting in the back of a classroom causes one to perform poorly on exams?
a. Not necessarily. The reoccurrence of a certain relationship between two variables does not necessarily imply causation. b. It is not possible for an economist to determine causation between variables. c. The reoccurrence of such a relationship is sufficient evidence that sitting in the back of a classroom will lead to lower grades. d. The reoccurrence of such a relationship is sufficient evidence that students who receive low grades prefer to keep a low profile and always sit in the back of the classroom.
If a negative externality results from the production of chemicals, an external cost is imposed on parties not directly involved in the market for the chemicals
a. True b. False Indicate whether the statement is true or false