We use the midpoint formula in computing the price elasticity of demand coefficient in order to:
A. Make the coefficient value become independent of whether price goes up or down
B. Convert absolute changes into percent-changes
C. Eliminate the negative sign of the coefficient
D. Make the coefficient become equal to the slope of the demand curve
B. Convert absolute changes into percent-changes
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A firm is said to be a price taker if it:
A) can affect the market price of goods by changing its supply. B) sells as much of any good as it wants at the prevailing market price. C) consults the government before fixing the price of its goods and services. D) is not free to enter a new market or exit from an existing market.
Carl's Computer Center sells computers to business firms. Businesses then use the computers to produce other goods and services. Over the past year,
sales representatives were paid $3.5 million, $0.5 million went for rent on the building, $0.5 million went for taxes, $0.5 million was profit for Carl, and $10 million was paid for computers at the wholesale level. What was the firm's total contribution to GDP?
Bill looked for work for six months but could not find a job to his liking. He now spends his time at the beach. For purposes of employment he is considered: a. out of the labor force
b. unemployed. c. employed in the underground economy. d. underemployed.
The danger of using the national defense argument to protect domestic industries necessary to wage war is that
a. it has no validity on non-economic grounds. b. it is unrelated to the United States' ability to wage war. c. other nations will retaliate with tariffs against U.S. producers of war material. d. industries with only the most peripheral relationship to defense are likely to invoke this argument on their behalf.