If the price elasticity of demand is 1, demand is:
A. upward sloping.
B. inelastic.
C. unit elastic.
D. elastic.
Answer: C
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a. the number of unemployed. b. frictional unemployment. c. the labor force. d. None of the above is correct.
The _____________ the size of the potential customer base for a given product (for example, music), the ______________ is the variety of goods we are likely to see
A) larger; greater B) smaller; smaller C) larger; smaller D) smaller; greater E) a and b
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A. lies above the demand curve. B. lies below the demand curve. C. lies above the marginal revenue curve. D. is the same as the marginal revenue curve.
According to the principle of diminishing returns, if the number of workers is increased beyond the point of diminishing returns, then the additional worker:
A. increases total output by the same amount as previous workers. B. increases total output by more than the amount of previous workers. C. increases total output by less than the amount of previous workers. D. decreases total output.