The formula for the price elasticity of demand
A. relies on statistical data.
B. is based fully on knowledge of the slope of the demand curve.
C. in practice drops the sign and focuses on the magnitude.
D. is valid only when the price of product increases.
Answer: C
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Which of the following accurately describes the impact of the rule of law on a country's economic growth rate?
A) Countries where favoritism and bribery are common have stronger rates of growth. B) Countries with a strong rule of law have faster economic growth. C) Countries with a weak rule of law have faster economic growth. D) Countries that enforce property rights through lawsuits have slower economic growth.
Suppose a worker signs a contract containing a 7 percent nominal wage increase with inflation expected to be 5 percent. Inflation turns out to be 10 percent, but the contract also contains 50 percent COLA protection
The worker's real wage under the contract A) falls by 3.0 percent. B) rises by 0.5 percent. C) rises by 2.0 percent. D) rises by 1.0 percent. E) falls by 0.5 percent.
A graph is a
a. lengthy, inefficient, and inconvenient way to illustrate information b. diagram illustrating a relationship between variables c. method of proving causation d. tool for incorporating all major and minor variables in one illustration e. clear way to see how the fallacy of composition works
If marginal physical product of labor is declining, then average physical product must also be declining
a. True b. False Indicate whether the statement is true or false