The price elasticity of demand coefficient for a good will be greater:
A. if close substitutes exist.
B. if minor complements exist.
C. in the short-run.
D. if a small portion of the budget will be spent on it.
Answer: A
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In a figure showing the average total cost curve and the average variable cost curve, the vertical distance between the two curves is equal to the
A) marginal cost. B) average fixed cost. C) total fixed cost. D) total variable cost. E) average marginal cost.
Which of the following would NOT cause a shift in the IS curve?
A) an increase in the domestic real interest rate B) an increase in consumer confidence C) a decrease in the expected future profitability of capital D) a decrease in government purchases
Which of the following move the handling of a common property resource closest to efficiency?
A) ensuring that the sellers of the resource are perfectly competitive B) ensuring that the seller of the resource is a monopolist C) banning the sale of the resource D) banning the use of the resource E) assigning a usage fee for access to the resource
Under a pure gold standard
A) the dollar is tied to gold and all other currencies are fixed relative to the dollar. B) all foreign exchanges involve gold for goods and services. C) all currencies are defined in terms of gold and these rates are fixed. D) all trade involves government agencies.