Price elasticity of demand is typically negative because
a. as price decreases, quantity demanded decreases
b. as price decreases, quantity demanded increases
c. as price decreases, demand decreases
d. as price decreases, demand increases
e. consumers rarely respond to a change in price
B
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If an individual moves money from a money market deposit account to currency
A) M1 increases and M2 stays the same. B) M1 stays the same and M2 increases. C) M1 stays the same and M2 stays the same. D) M1 increases and M2 decreases.
The primary reason why individuals are willing to pay entrepreneurs to organize production is
a. that they have to guarantee that the entrepreneur will make a profit b. they avoid taxation when activities are organized by someone else c. that it is better for businesses to pay taxes than individuals d. that it reduces transaction costs e. that entrepreneurs are more vulnerable in the case of the owner
Critics of a single tax on land oppose the idea because:
A. it would overtax the population. B. changes in land ownership would cause the tax burden to fall unfairly on people who did not receive economic rents. C. it would disproportionately tax the richest members of society. D. it would cause too much land to be brought out of production.
In 1955 consumers spent _____ cents of every dollar on services; but today _____ cents of every consumer dollar goes to services.
Fill in the blank(s) with the appropriate word(s).