The price elasticity of demand for a good measures the responsiveness of:
A. price to a 1 percent change in the quantity demanded of that good.
B. price to a 1 percent change in the demand for that good.
C. quantity demanded to a 1 percent change in price of that good.
D. demand to a 1 percent change in price of that good.
Answer: C
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An inward shift of a nation's production possibilities frontier can occur due to
A) a natural disaster like a hurricane or bad earthquake. B) an increase in the labor force. C) a change in the amounts of one good desired. D) a reduction in unemployment.
If a bond pays the same coupon payment forever without a maturity, it is known as a
A) perpetuity. B) forever bond. C) discount bond. D) consolidated bond.
The Sherman Antitrust Act of 1890 was not well understood because
(a) skilled lawyers were not involved in its creation. (b) judges were mainly political hacks and therefore were unable to follow the logic of the Act. (c) vested interests had been allowed too much influence in drafting the legislation. (d) the purpose of the legislation was not sufficiently clear when it was drafted.
One reason for selecting a section of microeconomics for which attendance is part of the grade (as opposed to one where it is not) is that it serves as a commitment device that will get you to attend class.
Answer the following statement true (T) or false (F)