Given that the own-price elasticity of demand for shoes is -2.6, if the price of shoes rises by 8%, what will happen to the quantity of shoes demanded?
a. It will decrease by 20.8%
b. It will increase by 20.8%
c. It will decrease by 2.6%
d. It will decrease by 2.6%
a
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A production possibilities frontier has a downward slope because
A. increased production of one good always reduces the additional profit of production. B. decreased production of one good is associated with lower profit from that good. C. economists have a negative view of life and human nature. D. increased production of one good always reduces production of the other. E. increased production of one good necessarily causes production of other goods to increase.
Explain how the market for opticians is affected as a result of the development of laser technology which reduces the demand for glasses and contact lenses
In your explanation be sure to show the connection between the market for glasses and contact lenses and the market for opticians.
The opportunity cost of postponing income to some future time depends on the interest rate.
Answer the following statement true (T) or false (F)
Efforts to fine-tune the economy have been used for several decades, and since then
A. Employment goals have been met, but price stability has not been attained. B. We still experience periods of recession, high unemployment, and inflation. C. We have successfully achieved our major economic goals at all times. D. Price stability goals have been met, but full employment has not been attained.