In the long run, output is determined solely by the supply of capital and the supply of labor, not the price level
Indicate whether the statement is true or false
TRUE
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The price elasticity of demand for beef is estimated to be 0.60 (in absolute value). This means that a 20 percent increase in the price of beef, holding every thing else constant, will cause the quantity of beef demanded to
A) decrease by 12 percent. B) decrease by 26 percent. C) decrease by 32 percent. D) decrease by 60 percent.
Which of the following is assumed to be most limited in scope under a market system?
A. Entrepreneurship B. Self-interest C. Competition D. Government
At small levels of output the gap between the ATC and the AVC curves is _______, and at larger levels of output the gap between the ATC and the AVC curves is _______.
Fill in the blank(s) with the appropriate word(s).
Assume that the hourly price for the services of personal trainers has risen and sales of these services have also risen. One can conclude that
A) the law of demand has been violated. B) the number of personal trainers has increased. C) the demand for personal trainers has increased. D) personal trainers are deliberately charging high prices because they provide services for wealthy clients.