If a one percent change in the price of oil causes a -0.02 percent change in the quantity demanded of oil, then -0.02 is the
A. income elasticity of demand.
B. price elasticity of supply.
C. cross-price elasticity of demand.
D. price elasticity of demand.
Answer: D
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According to predictions made by the Club of Rome in 1972, the collapse of the world economy will occur because of
A. low saving rates and, therefore, low rates of capital accumulation. B. the ever-increasing birthrate in developed countries. C. the depletion of nonrenewable resources. D. the world's limited capacity to produce food.
U.S. currency continues to be backed by the gold standard to this day
Indicate whether the statement is true or false
Which of the following statements is FALSE?
A) An unregulated, profit-maximizing monopolist will not operate in the inelastic portion of the demand curve. B) The marginal revenue earned by a monopolist will always be less than the product's price. C) Typically there are numerous very close substitutes for the product of a monopolist. D) For a profit-maximizing monopolist, marginal revenue equals marginal cost.
Unlike a perfectly competitive firm, a monopolistically competitive firm
a. faces a perfectly inelastic demand curve. b. can earn positive economic profit in the short run and in the long run. c. cannot earn positive economic profit even in the short run. d. does not have the same marginal revenue at every output level.