The term "unit elasticity" is used to describe a situation in which a rise in price is accompanied by
a. a fall in total expenditure.
b. a rise in total expenditure.
c. constant total expenditure.
d. a unit decrease in total expenditure.
c
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Which of the following games might a risk-averse person play?
a. a game where she has a 70 percent chance of winning $1 and a 30 percent chance of losing $1 b. a game where she has a 60 percent chance of winning $100 and a 40 percent chance of losing $100 c. a game where she has a 60 percent chance of winning $2 and a 40 percent chance of losing $1 d. All of the above are correct.
Largesse and Ginor are major producers of commercial aircraft. Which action indicates that the two firms are colluding?
a. Largesse has a binding contract with its main supplier of raw materials. b. Both firms benefit from economies of scale in their industry. c. Largesse has a binding contract with Ginor to restrict production. d. Both firms earn zero economic profits over the long run.
Discuss the three fundamental economic questions that all nations must address
Speculators make their profits on
a. price differences in different time periods. b. price increases from inflation. c. avoiding double taxation of income. d. the difference in interest rates on stocks and bonds.