How does one determine whether demand is elastic, inelastic, or unit elastic?
What will be an ideal response?
If the absolute value of the price elasticity of demand is greater than one, demand is elastic. If it is less than one, demand is inelastic. If the absolute value of the price elasticity of demand is equal to one, demand is unit elastic.
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The shift toward more open, integrated economies that participate in foreign trade and investment is referred to as:
A) protectionism. B) fair trade promotion. C) globalization. D) traditionalism.
If a firm's output less than doubles when all inputs are doubled, production is said to occur under conditions of
A) increasing returns to scale. B) imperfect competition. C) intra-industry equilibrium. D) constant returns to scale E) decreasing returns to scale.
An economy's PPC illustrates the extent to which the economy consumes what it produces
a. True b. False Indicate whether the statement is true or false
At which interest rate is the present value of $360 three years from today equal to about $310 today?
a. 4.7 percent b. 5.1 percent c. 5.5 percent d. 5.9 percent