An elasticity of 0.75 means that a 1% change in price will lead to a ____% change in quantity demanded.
A. 0.25
B. 0.75
C. 2.5
D. 7.5
B. 0.75
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An excess quantity of money demanded will lead to a rise in
A) bond prices. B) income. C) the interest rate. D) investment.
The law of decreasing returns states that as a firm uses more of a
A) fixed input, with a given quantity of variable inputs, the marginal product of the fixed input eventually decreases. B) variable input, total output will increase indefinitely. C) variable input, with a given quantity of fixed inputs, the marginal product of the variable input eventually decreases. D) variable input, output will begin to fall immediately. E) fixed input and a variable input, the marginal product of the fixed input and the marginal product of the variable input both decrease.
When Safeway supermarkets in the United States buys strawberries from Mexico
A) it uses dollars to pay Mexican farmers. B) it uses pesos to pay Mexican farmers. C) it may use any currency it chooses. D) the transaction shows up in the U.S. capital account.
There were more poor people in America in 2005 than there were in 1965
Indicate whether the statement is true or false