Suppose the price change of a good causes no change in quantity demanded, we would say that the item is
A) perfectly elastic.
B) perfectly inelastic.
C) infinitely elastic.
D) unitary elastic.
Answer: B
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The amount of corruption that occurs in a government is hard to measure because:
A. its costs are mostly indirect and nearly impossible to measure. B. it is illegal, and therefore hidden. C. the benefits subtracted from the costs often go to a small number of people and distort the reality. D. All of these are true.
How can bonuses to exceptional employees be considered economic rents?
What will be an ideal response?
This graph shows the marginal cost and marginal benefit associated with roadside litter clean up. Assume that the marginal benefit curve and marginal cost curve each have their usual slope.
According to this graph, the marginal benefit of litter removal is highest when the ________ bag of litter is removed.
A. 10th B. 15th C. 1st D. 30th
One of the problems of transfer prices comes from the successive impact of the prices as the product moves downstream toward the consumer. At each step, the transfer price becomes the ________ for the next part of the company.
A. marginal cost B. negotiated price C. total cost D. market price