The price of pens increases from $2 to $2.20. At the same time, the quantity of pens demanded decreases from 100 to 90. Demand for pens is
A) perfectly inelastic.
B) inelastic.
C) unitary elastic.
D) elastic
Ans: C) unitary elastic.
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Besides the Central Limit Theorem, the other cornerstone of asymptotic distribution theory is the
A) normal distribution. B) OLS estimator. C) Law of Large Numbers. D) Slutsky's theorem.
Gross private domestic investment or simply business investment spending (I):
a. excludes all investment in the United States by foreign firms. b. includes all capital in the United States. c. includes net additions to the capital stock plus all new corporate stocks and bonds. d. includes business expenditures on new factories, tools, and machinery.
Total Revenue Product with six units of labor would be
A. $200.
B. $340.
C. $1,000.
D. $1,200.
Select the normative statement that completes the following sentence: If the minimum wage is raised:
A. cost per unit of output will rise. B. workers will gain their rightful share of total income. C. the rate of inflation will increase. D. profits will fall.