Since it is always a negative number, economists use the convention of taking the absolute value of:
A. the elasticity of total revenue.
B. the price elasticity of surpluses.
C. the price elasticity of shortages.
D. price elasticity of demand.
Answer: D
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The demand curve faced by a pure monopolist
A) is the same as its marginal revenue curve. B) is perfectly inelastic. C) lies below the marginal revenue curve. D) is the market demand curve.
Name at least four institutional structures that promote and sustain modern economic growth. What other factors also influence a nation’s capacity for economic growth?
What will be an ideal response?
If a firm is a perfect competitor, then
A) the demand curve for its product is perfectly elastic. B) it can independently set the price of the product it sells without regard to what other firms in the market are doing. C) it is impossible for the firm to earn short-run economic profits. D) its marginal cost will exceed marginal revenue at the optimal level of output.
Which statement is false?
A. Health and safety regulations diverted resources from investment. B. Higher energy costs stimulated economic growth. C. Environmental protection legislation slowed economic growth. D. Government regulation has increased the cost of doing business.