For which of the following purchases would the absolute price elasticity of demand be greatest?
A) a luxury sedan
B) utilities
C) chewing gum
D) a smartphone
Answer: A
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Assuming we are considering a normal good, the calculated price elasticity of demand is:
A) always positive. B) always negative. C) positive if demand is elastic and negative if demand is inelastic. D) positive if demand is inelastic and negative if demand is elastic.
Investment in human capital
A) is quite different from and has a much lower return than investment in physical capital. B) is just like investment in physical capital and has a return similar to that earned from other investments. C) is just like investment in physical capital but has a much greater return than do other investments. D) is not comparable to other investments in any way since human capital is embodied in the person.
A nation's production possibilities curve [PPC] will shift outward if its workers receive better training
a. True b. False Indicate whether the statement is true or false
Below the equilibrium level of nominal interest rates, there is a _______ of money and money interest rates will tend to _____ as a result. a. Shortage; fall. b. Shortage; rise. c. Surplus, fall
d. Surplus; rise.