Since it is always a negative number, economists use the convention of taking the absolute value of:
a. income elasticity of demand.
b. cross price elasticity of demand.
c. price elasticity of supply.
d. price elasticity of demand.
e. any elasticity calculation.
d
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A purely competitive firm is faced with a marginal revenue curve that lies everywhere below the average variable cost curve. Would this firm be able to operate in the short run? Explain
What will be an ideal response?
Consider a society facing the production possibilities curves in the figure shown. What is the most likely cause of a society moving from PPF3 to PPF1?
A. A tornado
B. More workers
C. A desire to read lessbooks
D. Better sewing technology
Use of real GDP to measure changes in national output from one period to another can be misleading if
What will be an ideal response?
In using a tanks and trucks production possibilities curve with increasing opportunity cost, producing more and more tanks
A. Is not possible due to scarcity. B. Requires us to give up larger and larger amounts of trucks per tank produced. C. Lowers the cost of each individual tank. D. Can be done at a constant opportunity cost.