Which of the following examples shows the most elastic demand?
a. When the price of gasoline increases from $2.50 to $2.75 per gallon, sales remain the same.
b. When the price of stoves increases from $700 to $800 per stove, sales decrease by half.
c. When the price of apples decreases from $2 to $1 per pound, sales increase 10 percent.
d. When the price of cell phones decreases from $100 to $80 per phone, sales triple.
d. When the price of cell phones decreases from $100 to $80 per phone, sales triple.
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Under laissez-faire, the allocation of resources among different products depends on
A. consumer preferences. B. production costs. C. Both a and b are correct. D. Neither a nor b is correct.
The basic problem with the government setting an absolute poverty line is that it is
a. completely objective. b. somewhat arbitrary. c. unconstitutional. d. based on average income.
Productivity is
A. Output per unit of input. B. The inverse of cost efficiency. C. The increment of output produced when one more unit of an input is employed in the production process. D. The same as marginal revenue.
An example of physical capital is:
A. a tractor. B. a high-yield seed varietal. C. a farmer. D. All of these are examples of physical capital.