Price elasticity of demand is a measure of the relative responsiveness of the change in price to a change in quantity demanded
a. True
b. False
Indicate whether the statement is true or false
False
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In a graph of unemployment rates (on the horizontal axis) versus inflation rates (on the vertical axis), the short-run Phillips Curve is
A) downward sloping. B) vertical. C) upward sloping. D) horizontal.
What would happen to a production possibilities frontier (with capital goods measured on the vertical axis and consumption goods on the horizontal axis) if there is an increase in the labor force?
a. The entire frontier would shift outward. b. The upper part of the frontier would shift outward while the lower part would shift inward. c. Nothing, there would be no movement of the frontier. d. The entire frontier would shift inward. e. The lower part of the curve would shift outward while the upper part would shift inward.
Generally with bond ratings, the ________ the rating, the lower the interest rate an investor will receive and the ________ the risk that the issuer of the bond will default
A) higher; higher B) higher; lower C) lower; higher D) lower; lower
If aggregate output is greater than planned spending, then
A. unplanned inventory investment is zero. B. unplanned inventory investment is positive. C. actual investment equals planned investment. D. unplanned inventory investment is negative.