If the price elasticity of demand is equal to 1, then demand is unit elastic
a. True
b. False
Indicate whether the statement is true or false
True
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Other things equal, an increase in an economy's exports will:
A. lower the marginal propensity to import. B. have no effect on domestic GDP because imports will change by an offsetting amount. C. decrease its domestic aggregate expenditures and therefore decrease its equilibrium GDP. D. increase its domestic aggregate expenditures and therefore increase its equilibrium GDP.
Brand management refers to
A) the efforts to maintain the differentiation of a product over time. B) selling the right to use a brand name in a particular market. C) picking a brand name for a new product that will attract attention. D) efforts to reduce the cost of production.
Which of the following is NOT a reason financial regulation and supervision is difficult in real life?
A) Financial institutions have strong incentives to avoid existing regulations. B) Unintended consequences may happen if details in the regulations are not precise. C) Regulated firms lobby politicians to lean on regulators to ease the rules. D) Financial institutions are not required to follow the rules.
Why doesn't the marginal worker hired earn economic rent in a competitive labor market?
A) His reservation wage is less than the wage. B) His reservation wage is greater than the wage. C) His reservation wage is equal to the wage. D) He is paid a wage that is lower than the others.