To say that demand is elastic means that
A. people do not like the good very much.
B. relatively small changes in quantity demanded lead to relatively small changes in price.
C. relatively small changes in price lead to relatively large changes in quantity demanded.
D. quantity demanded not very responsive to price changes.
Answer: C
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Firms will continue to increase their purchase of factor inputs as long as ________
A) the marginal product of a given factor is greater than its real factor price B) the marginal cost of a given factor is lower than its marginal product C) their total revenues are greater than their total costs D) all of the above E) none of the above
Another term for factors of production is
a. inputs. b. output. c. goods. d. services.
Which of the following statements concerning the prisoner's dilemma is TRUE?
A. Neither player will pick the dominant strategy. B. The player who moves last will always win. C. The player who moves first will always win. D. Confessing is the dominant strategy for both players.
If a country moves from fixed to flexible exchange rates, its macroeconomic policy
A. is restricted, as it can only use fiscal policy to achieve its economic goals. B. must follow policy directives from the IMF. C. is restricted, as it can only use monetary policy to achieve its economic goals. D. is no longer restricted.