When discussing the price elasticity of demand we generally refer to the absolute price elasticity of demand by consumers. This means that we will
A) disregard the law of demand.
B) ignore its relationship to demand.
C) disregard the minus sign.
D) consider absolute rather than relative changes.
Answer: C
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Answer the following statement(s) true (T) or false (F)
1. If the Open Range Field is currently a common property and the government decides to charge an entrance fee, this would result in an optimal level of activity in the Open Range Field. 2. Crowding at a common property site both reduces the benefits of visitors and increases the costs of being a visitor. 3. When people have identical tastes, nobody has any incentive to maintain or improve a property that is commonly owned. 4. When people have identical tastes, the rents created by a common property are totally dissipated. 5. When people have identical tastes, social gain can be created from a common property by imposing a Pigovian tax on entrants.
Which of the following is a liability on the balance sheet of the Federal Reserve System?
A) currency B) U.S. government securities C) mortgage-backed securities D) None of the above are correct because they are all assets of the Federal Reserve.
Explain import substitution
What will be an ideal response?
If a country's population grows at the same rate as its real GDP, then real per capita GDP:
a. grows at an increasing rate. b. grows at a constant rate. c. doesn't change. d. decreases at a decreasing rate. e. decreases at a constant rate.