A good will tend to be more price elastic if it
a. is a luxury good.
b. has no close substitutes.
c. is a small part of the household budget.
d. is a necessity.
a
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For a perfectly competitive firm,
a. P = MR at all output levels b. P = MR at the profit-maximizing quantity only c. P > MR at all output levels d. P < MR at the profit-maximizing quantity only e. P < MR at all output levels
Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. Canada has the ____________ opportunity cost of a pair of shoes than the United States, so: ____________.
A. higher; Canada should specialize in shoe production B. lower; Canada should specialize in apple production C. higher; Canada should specialize in apple production D. lower; Canada should specialize in shoe production
High interest rates
A. increase the profitability of capital investments. B. decrease the opportunity costs of capital investments. C. increase the opportunity costs of capital investments. D. decrease the profitability of current sales.
A double coincidence of wants
a. is required when there is no item in an economy that is widely accepted in exchange for goods and services. b. is required in an economy that relies on barter. c. is a hindrance to the allocation of resources when it is required for trade. d. All of the above are correct.