The income elasticity of demand is defined as the percentage change in
A) the quantity demanded resulting from a given percentage change in price.
B) income divided by the percentage change in quantity demanded.
C) the movement along the demand curve resulting from a change in income.
D) the quantity demanded divided by the percentage change in income.
D
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The per-worker production function flattens out due to ________
A) the negative relationship between price and quantity demanded B) the positive relationship between price and quantity demanded C) the diminishing marginal product of capital D) an increase in the general level of prices
Why do many people choose NOT to read the manuals included with their new computer?
A) They perceive that learning by doing decreases costs faster than learning by reading. B) They perceive that learning by doing is more enjoyable than learning by reading. C) They perceive that learning by reading is not sophisticated. D) They believe that the manuals are not accurate.
Nominal values are measured in
a. constant prices. b. dollars. c. actual prices. d. highest prices.
Which of the following factors reduces the need for government involvement in the marketplace?
A. The need for public goods B. Incomplete information C. The incentive to rent-seek D. The presence of externalities