If the absolute value of the price elasticity of demand for a product is less than 1, then
A) quantity demanded is very sensitive to price changes.
B) demand is inelastic.
C) demand is unit-elastic.
D) demand is elastic.
Answer: B
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Answer the following statement(s) true (T) or false (F)
1. A country will gain from international trade whenever the world relative price differs from the autarkic relative price. 2. Large countries have more to gain from international trade than small countries do. 3. A perfectly competitive firm is one that can sell any quantity that it wants at any price it wants. 4. A competitive firm faces a downward-sloping demand for its product. 5. For a competitive firm, marginal revenue is constant and equal to the market price.
At the current level of output, the marginal social benefit from a slice of pizza is less than the marginal social cost of producing a slice of pizza
Resources will be used more efficiently if ________ slices of pizza are produced and ________ other goods are produced. A) fewer; fewer B) more; fewer C) more; more D) fewer; more
The cyclically-adjusted surplus as a percentage of GDP is 1 percent in Year 1. This surplus becomes a deficit of 2 percent of GDP in Year 2. It can be concluded from Year 1 to Year 2 that:
A. Fiscal policy turned more expansionary B. Fiscal policy turned more contractionary C. GDP increased D. GDP decreased
Gross domestic product is the money value of manufacturing production in a year.
Answer the following statement true (T) or false (F)