If the absolute value of the price elasticity of demand for a product is greater than 1, then
A) quantity demanded is not very sensitive to price changes.
B) demand is elastic.
C) demand is unit-elastic.
D) demand is inelastic.
B
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Assume the current price investors are willing to pay on a $1,000 face value one-year Treasury bill is $980.39, and investors expect that they will be willing to pay $961.54 on a $1,000 face value one-year Treasury bill one year from now
According to the expectations hypothesis, the current interest rate (per year) on a $1,000 face value two-year Treasury bill should be A) 3%. B) 4%. C) 5%. D) 6%.
A prisoner of war camp seems a likely place for "cigarette money," because ________
A) nearly all prisoners smoke cigarettes B) of the absence of better alternatives C) cigarettes are abundant and easy to count D) the guards can enforce the practice of accepting cigarettes as a medium of exchange E) cigarettes retain their value over time
The owner of a good has the right to decide how that good is used and to restrict others from using that good. This idea is known as:
a. the principle of mutual excludability. b. the principle of comparative advantage. c. the principle of public ownership. d. the principle of negative externalities. e. the law of demand.
The table below shows the daily production potential of two workers, if they devote all their time to making either pizza or wings. Who has the absolute advantage at producing wings?
What will be an ideal response?