Along a linear downward-sloping demand curve, the price elasticity of demand will be:
A. Greater than one across each price range
B. Less than one across each price range
C. Equal to zero across each price range
D. Different across each price range
D. Different across each price range
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________ is the knowledge and skill that people have obtained from education and on-the-job training
A) Labor productivity B) Human capital C) Capital D) Technology
Economic efficiency requires that a natural monopoly's price be set corresponding to the quantity where marginal revenue equals marginal cost
Indicate whether the statement is true or false
Inflation is an economic problem because it
A) leads inevitably to unemployment. B) makes prices less useful as signals for resource allocation. C) leads to recession. D) results in rapid increases in the money supply.
If there is an improvement in technology that affects only Aggregate Supply and a nation's wealth falls due to sagging stock market, then:
a. Aggregate demand falls, and aggregate supply rises. b. Aggregate demand and aggregate supply rise. c. Aggregate demand rises, and aggregate supply falls. d. Neither aggregate demand nor aggregate supply change. e. None of the above.