Refer to the information provided in Figure 5.2 below to answer the question(s) that follow.
?Figure 5.2Refer to Figure 5.2. If the price of a hamburger increases from $6 to $8, the price elasticity of demand equals ________. Use the midpoint formula.
A. -0.24
B. -1.0
C. -1.4
D. -2.0
Answer: C
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Assumptions for economic theories and models should be
A) rejected if they are not totally realistic. B) logical rather than empirically testable. C) simple and reasonable rather than complex. D) maintained until overwhelming evidence to the contrary occurs.
In ____ 2-person, nonzero-sum games there is no communication between the participants and no way to enforce agreements
a. noncooperative b. cooperative c. a and b d. none of the above
As price falls, quantity supplied ___________.
Fill in the blank(s) with the appropriate word(s).
What real or potential economic problem is posed by the public debt and its growth?
A. It can lead the nation to bankruptcy. B. It may crowd out investment in new capital goods. C. It causes expansionary economic policy making. D. It places an unwarranted economic burden on future generations.