If a small percentage change in price causes a larger percentage change in the quantity demanded, the good has:
A. an elastic demand.
B. an inelastic demand.
C. a high magnitude of response.
D. a low magnitude of response.
Answer: A
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What is the main difference between classical economists' ideas about economic growth versus what modern evidence suggests?
What will be an ideal response?
In effect, the U.S. does subsidize high-tech firms by subsidizing R&D. This is done through
A) the budget of the Department of Education. B) systematic protection through the levying of tariffs. C) systematic protection through the establishment of NTBs. D) relatively accelerated "depreciation" of R&D investment in the Federal tax codes. E) subsidies for high-tech firms.
If the price of a product increases
A) there is an increase in quantity supplied and a decrease in demand. B) there is an increase in supply and a decrease in quantity demanded. C) there is an increase in supply and a decrease in demand. D) there is an increase in quantity supplied and a decrease in quantity demanded.
Draw a graph of the firm's demand, marginal revenue, marginal cost, and average total cost curves.
