If a 10 percent rise in price leads to a reduction in quantity demanded of more than 10 percent,
A. demand is elastic.
B. demand is inelastic.
C. elasticity of demand is unitary.
D. None of the above is correct.
Answer: A
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The goods and services that count toward GDP are defined in terms of:
A. the location of production, not the citizenship of the producer. B. the citizenship of the producer, not the location of production. C. citizens producing within a country's borders. D. total production of companies owned by citizens, regardless of the actual location of production.
If the government removes a $1 tax on sellers of gasoline and imposes the same $1 tax on buyers of gasoline, then the price paid by buyers will
A. not change, and the price received by sellers will not change B. increase, and the price received by sellers will increase. C. increase, and the price received by sellers will not change. D. not change, and the price received by sellers will increase
The price elasticity of demand measures:
a. how sensitive quantity demanded is to a change in supply. b. how sensitive quantity demanded is to a change in consumer taste and preference. c. how sensitive quantity demanded is to a change in income. d. how sensitive quantity demanded is to a change in price.
Economic rent is the portion of a resource's total earnings above its opportunity cost
Indicate whether the statement is true or false