Along a straight-line demand curve (dropping all minus signs), the price elasticity of demand
a. gets larger as quantity demanded gets larger.
b. gets smaller as quantity demanded gets larger.
c. always equals one.
d. is constant (though not necessarily equal to one).
b
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A physician who laid off her nurse and receptionist and performed their tasks herself would probably
A) decrease her accounting profit but increase her economic profit. B) decrease her profit from the economist's point of view even if she increased her accounting profit. C) increase both her accounting and economic profit if her practice was a busy one. D) wind up with lower labor costs unless the layoff greatly increased the demand for her professional services. E) work more efficiently in order to get everything done.
Pseudo out of sample forecasting can be used for the following reasons with the exception of
A) giving the forecaster a sense of how well the model forecasts at the end of the sample. B) estimating the RMSFE. C) analyzing whether or not a time series contains a unit root. D) evaluating the relative forecasting performance of two or more forecasting models.
A higher saving rate will promote capital deepening.
Answer the following statement true (T) or false (F)
An information product is a product for which
A) the first item is produced inexpensively but additional units are more costly to produce. B) the first unit is very costly to make but additional units are less costly to produce. C) the marginal cost first falls and then rises but the average total cost rises throughout its range. D) the average fixed cost first falls and then rises, but the average total cost falls throughout its range.