If ice cream has an absolute price elasticity of demand that is greater than 1, then the demand for ice cream is
A) elastic.
B) inelastic.
C) perfectly inelastic.
D) unit elastic.
Answer: A
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Other things remaining the same, if the U.S. interest rate differential increases, the demand curve for U.S. dollars shifts ________ and the supply curve of U.S. dollars shifts ________
A) rightward; rightward B) rightward; leftward C) leftward; rightward D) leftward; leftward
Refer to Table 8-29. Based on the table above, what is national income for this economy?
A) $4,700 billion B) $4,000 billion C) $3,150 billion D) $2,450 billion
The long-run supply curve in a competitive market is upward-sloping
Indicate whether the statement is true or false
Which of the following statements about a perfectly competitive market are TRUE?
I. The perfectly competitive industry faces an upward sloping labor supply curve. II. The individual firm in a perfectly competitive industry faces a perfectly elastic labor supply curve. A) I only B) II only C) both I and II D) neither I nor II