If a 10 percent increase in the price of a luxury hotel room causes the quantity demanded to decrease by 41.5 percent., we can conclude that the price elasticity of demand for luxury hotel rooms is approximately -0.24
Indicate whether the statement is true or false
FALSE
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Locating an American automobile factory in Chad is likely to
a. be successful (profitable) because the workers' wages are low b. be successful (profitable) because Chad workers would be appreciative of the opportunity to work with modern machinery so that their productivity would be high c. be unsuccessful (unprofitable) because of the absence of an infrastructure d. be unsuccessful (unprofitable) because the Chad economy would be operating at more than full employment so that prices and wages would rise e. be successful (profitable) because basic resources (such as raw materials) used in auto production would be exploited fully and would be cheaper than in the U.S.
The concept of absolute advantage relies on
A) the idea of comparative advantage. B) the ability to produce more units of an item with a given amount of resources. C) the idea of opportunity cost. D) the concept of economic efficiency as measured on the production possibility curve.
The international adjustments, which will help the U.S. economy out of a structural stagnation, include:
A. running expansionary policies to shift the aggregate demand curve to the right. B. hiring workers in the government sector to boost employment. C. depreciating the value of the dollar. D. extending unemployment compensation to replace income for unemployed workers.
When a regulatory agency uses marginal cost pricing to regulate a monopolist,
a. price will exceed marginal cost. b. production costs will probably exceed the total revenues of the monopolist. c. marginal cost will equal average total cost. d. social welfare could be improved if average cost pricing was used instead